Dollar on defensive with Fed Chair likely to commit to dovish policy

The dollar was on the defensive against its peers on Wednesday as traders awaited comments from Fed Chair Jerome Powell, who is likely to maintain a dovish policy.

The dollar held declines against risk currencies amid hopes for pandemic recovery. The dollar index rose 0.1% to 90.253 in Asian trade after falling 0.2% in the last session.

The pound rose to $1.3753, its highest level since May 2018, before falling to $1.3724. The Aussie slid 0.2% to 77.30 U.S. cents. 

Investors are also keeping an eye on the U.S. stimulus as Democrats are poised to pass it with a majority vote. 

The dollar rose 0.1% to 103.72 against the yen. The euro was flat at $1.2153 after gaining 0.1% in the last session.