The US dollar is maintaining its strength against the global basket of currencies on Wednesday.
The dollar continues to be supported by solid US economic data, which showed that the manufacturing sector grew for the first time since September 2022, as well as a stronger-than-expected rebound in new orders for US-made goods and a robust labor market.
"Markets have generally lowered their expectations for FOMC rate cuts in recent weeks amid strong US economic data and resistance from FOMC officials," said Carol Kong of the Commonwealth Bank of Australia (CBA).
The US Dollar Index .DXY, which tracks its performance against six global peers, was up 0.06% at 104.81.
"I think the dollar will hold up quite well in the short term, and that will be a headwind for other major currencies," Carol Kong said.
USD/JPY rose 0.11% to 151.71 as the Bank of Japan's desire not to delay further rate hikes hit the yen, especially given the still wide yield gap between Japan and the US.
Japanese authorities are taking active measures to protect the yen and have repeatedly hinted at possible intervention if it continues to fall, Reuters reported.
At the same time, Morgan Stanley MUFG Securities analyst Koichi Sugisaki believes that intervention would not be enough to support the yen.
"We do not expect unilateral intervention to support the Japanese yen to cause more than a temporary decline in the USD/JPY exchange rate, as such actions will say nothing about the future direction of monetary policy," Sugisaki said.
EUR/USD was down 0.02% at 1.0766, while GBP/USD was down 0.11% at 1.2564.
USD/CNY rose 0.05% to 7.2355 despite the release of more upbeat domestic manufacturing data, including service sector data.
Analysts said the ongoing crisis in the housing sector remains a major drag on the world's second-largest economy.
AUD/USD and NZD/USD remained stable at 0.6512 and 0.5972, respectively.
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