The dollar was on the back foot on Wednesday as the slowing spread of the coronavirus and moves to re-open economies supported the investor mood, ahead of major central bank meetings.

The risk-sensitive Australia dollar rose 0.4% to $0.6517 to track toward a sixth straight session of gains, and the currency's best month in four years. The New Zealand dollar rose 0.6% to $0.6093, its highest in a week.

But gains were capped by caution and other majors steady as markets look to the U.S. Federal Reserve, which meets on Wednesday, and the European Central Bank, which meets on Thursday, for guidance.

Investors will be watching to see if the U.S. central bank gives any clues on its future policy path after it responded to the economic devastation of the COVID-19 pandemic by slashing rates, buying bonds and backstopping credit markets.

The Fed is due to issue a statement at 1800 GMT, followed by a press conference with chairman Jerome Powell at 1830 GMT.

The U.S. dollar was steady against a basket of currencies at 99.837, and slipped a fraction against the rangebound euro, yen and pound.

The dollar sat near a six-week low against the yen at 106.70 yen per dollar. A pound bought $1.2441 and a euro  $1.0835.

Source : Reuters