By Gina Lee

Investing.com – The dollar was down on Wednesday morning in Asia and the was near its weakest in a month versus the safe-haven dollar and Japanese yen. The potential conflict in Ukraine and the faster than expected U.S. policy decisions regarding monetary policy tightening remain concerns for investors.

This chart tracks the greenback’s value against a basket currency. It was 0.01 % lower at 95.920 as of 10:19 PM ET (3.19 GMT).

It climbed 0.2% to 113.89.

While the Australian market was closed, the pair gained 0.14% to 0.75158. However, the pair fell 0.6% to 0.6682.

Both the pair dropped 0.08% at 6.3227 while they gained 0.12% to 1.31512 An investigation is underway in the U.K. into allegations that Prime Minister Boris Johnson may have violated COVID-19 lockdown regulations. A later announcement could come from an internal inquiry.

Following a fall to $1.1264 overnight, the euro was still flat at $1.1303. This is the first drop in value since December 21, 20,21. Also, the single currency saw a 0.06% drop to 128.64yen. This is also after it reached the 128.25 mark on the previous session.

Western leaders continue to accelerate preparations to counter any Russian military action in Ukraine, while Russia expressed “great concern” after 8,500 U.S. troops were put on alert to deploy to Europe if an escalation takes place.

The Fed was the focal point of the discussion, as it will announce its decision later that day. Investors will look for clues about the timing and nature of interest rate increases or quantitative tightening (QT) but at this time, money market prices are priced for a March 2022 increase.

In a note, TD Securities analysts stated that market sentiment was still fragile.

From the Fed, “any hints around the starting point for QT or ‘sooner’ and ‘faster’ on hikes could be market-moving,” but “we don’t expect definitive signals, unfortunately, and the result could be mixed messages.”

The Canadian Dollar will rise to CAD$1.2622 in comparison with its U.S counterpart later today.

According to TD Securities analysts, “There’s a lot of uncertainty surrounding the January Bank of Canada Rate Announcement.”

On Thursday, the South African Reserve Bank will announce its policy decision. The next week will see the same.