The dollar is climbing for a third day as bond yields and sterling are falling
The dollar rose for a third consecutive day on Wednesday, as US Treasury yields rose ahead of a widely-anticipated Federal Reserve meeting to raise interest rates for the fourth time this year.
US interest rates may be nearing a peak, but the relative differences between interest rates still provide some support for the dollar index, which measures the performance of the greenback against a basket of currencies, rising 0.02 percent to 97.41.
The dollar also received support from reports that China is considering reducing import duties on US-made cars to 15 percent from 40 percent now, and a Canadian court has released the financial director of Huawei Technologies on bail.
However, market movements were limited as there was little change in currencies, which are an indicator of investors' appetite for risk, such as the Australian dollar and the euro against the Swiss franc, which gained little change.
Sterling was the biggest loser, dropping below $ 1.25 after lawmakers voted to withdraw confidence from British Prime Minister Theresa May on Wednesday.
The yuan rose in foreign trade to 6,886 yuan to the dollar, consolidating gains made in the previous session. The yuan strengthened on Tuesday with support from news that Beijing and Washington were considering next steps in their trade talks.
The dollar was broadly ground against the yen at 113.445 yen, after hitting a week high of 113.52 yen.