Peter Nurse

Investing.com — The U.S. dollar fell Wednesday after gains in equity markets around the world boosted risk-awareness, while Federal Reserve officials reduced expectations of an increase in interest rates. 

The Dollar Index, which measures the greenback’s performance against a basket six other currencies at 03:15 ET (0815 GMT), fell 0.2% to 96.135. This was a decline from last week’s 18-month high, 97.441.

After strong Alphabet results (NASDAQ:), the dollar has been selling on Wednesday, which is often seen as the safest place in stressful times. 

Australian dollars, which are risk sensitive, have gained up to 0.1% from 0.7135 while the Australian dollar has seen 0.1% rise to 1.1275 in the lead-up to the publication of January’s Eurozone CPI number.

Recent moves made by Fed officials, which have weighed on the dollar and diluted expectations for a 50 basis point hike by the U.S. central banks in March, despite inflation hovering at 40 years highs.

James Bullard of St. Louis Federal Reserve, who is often regarded as one of most hawkish Fed policymakers said Tuesday that he supports successive rate hikes at the Fed’s March-May, June and July meetings. 

He disagreed however with the idea that a half percentage point increase in March be initiated, stating that markets already have begun to drive up borrowing costs.

Esther George of the Federal Reserve Bank of Kansas City, another hawk, stated that the central bank needed to be more cautious in increasing interest rates and shrinking its balance sheet.

Traders will keep an eye on the release of the , at 8:15 AM ET (1315 GMT), ahead of Friday’s monthly official . After registering its highest pace of growth in seven months, December’s 807,000-plus rate, private job growth will likely slow to 207,000 in January.

Elsewhere, rose 0.1% to 1.3539, with sterling maintaining recent strength ahead of Thursday’s meeting, where a second hike in less than two months is widely expected.

0.1% fell to 114.56. This was a continuation of last week’s high at 115.68. The low at 6.3610 was also flat.