By Gina Lee

Investing.com – The dollar was up on Wednesday morning in Asia, while the euro held on to overnight gains in early Asia Pacific trade. Investors were also able to digest reports from Russia that it could withdraw forces from the border with Ukraine.

That tracks the greenback against an assortment of currencies rose 0.05% by 10:30 PM ET to 96.045 (03:54 GMT)

It climbed 0.6% to 115.69

Both were steady at 0.75152, but the pair dropped 0.03% to 0.6637.

This pair climbed 0.01% to 6.3403.

This pair increased by 0.05% to 1.33540

Tuesday’s footage from Russia’s defense ministry showed that it had pulled troops out of Ukraine’s borders after conducting exercises. The U.S. President Joe Biden denied that they had verified the move. However, Ukraine immediately reported an attack on its online network of defense ministries and banks within hours of the Russian announcement.

After climbing 0.45% on Tuesday, the euro settled at $1.1356 Wednesday. Global shares rebounded in spite of fears about a Russian withdrawal.

However, some investors were optimistic that the dollar’s losses would be capped.

In a note, Westpac analysts stated that the dollar lost ground as Ukraine’s geopolitical risk premium emerged from markets. But they expect an aggressive Fed increase cycle which should help to keep the base in place.

Widely expected, the U.S. Federal Reserve would raise interest rates at their March 2022 meeting. However, there are many more increases likely throughout the year.

Investors now await the later in the day, which could influence the dollar and U.S. rates’ movements. At 2.0329, the yield on benchmark stood at last.

The debate continues among Fed officials about how aggressively they should raise interest rates. James Bullard, the President of St. Louis Fed, reiterated Monday his call to accelerate Fed rate increases. However some Fed officials are not as keen on committing to half-point rises or even being concerned about it causing trouble.

According to Reuters, economists believe that the Bank of England may raise its interest rates 25 basis points across the Atlantic at its March meeting. Three consecutive rates hikes were made by the central bank in 1997.