The dollar struggled to bounce off seven-week lows on Wednesday after U.S. central bank officials hinted at the possibility of an interest rate cut in the face of rising risks to trade and global growth.

Federal Reserve Chairman Jerome Powell on Tuesday dropped his standard reference to the Fed being “patient” in approaching any rate decision, saying instead the central bank will respond as “as appropriate” to trade pressure.

The dollar index against a basket of six peers barely budged, moving up 0.03% at 97.105, within reach of a recent low of 96.995 - its lowest since April 18. It has now fallen 1.3% from a more than two-year high of 98.371 touched on May 23.

On Wednesday, the Australian dollar rose 0.05% to $0.6994 ahead of the release of first-quarter gross domestic product data due at 0130 GMT.

The euro was up 0.05% at $1.1257, extending its gains to a fourth session.

Against the yen, the dollar held steady at 108.165 yen per dollar, within striking distance of a near five-month high of 107.845 - its highest since Jan. 10 - hit during the previous session.

Source : Reuters