Dollar rate chart shows weak appreciation of the dollar against major world currencies. Traders are keeping an eye on US-China relations and assessing statements by the Federal Reserve System (FRS) leaders.

The day before the yen rose sharply due to demand for protective assets, which jumped up because of a new round of tensions between the U.S. and China. On Tuesday night, U.S. House Speaker Nancy Pelosi arrived in Taiwan despite warnings from the Chinese side about the undesirability of such a visit.

Pelosi’s visit to Taiwan was a serious violation of the principles of “one China” and the establishment of diplomatic relations between the PRC and the United States, seriously affecting the political basis of Sino-US relations, with which China protests strongly, said a statement of the Chinese Foreign Ministry.

Meanwhile, several members of the leadership of the Federal Reserve in their overnight speeches expressed their willingness to continue tightening monetary policy despite a downturn in the U.S. economy. In particular, the heads of the Federal Reserve Banks of San Francisco, Chicago and St. Louis said further rate hikes were necessary.

As of 9:42am, the euro was down 0.03 percent against the dollar, trading at $10,163, down from $1.0166 at market close Tuesday.

The pound fell 0.05% to $1.2164, compared to $1.2170 at the close of the previous session.

In pair with the yen, the rate of the American currency grew by 0.09% to 133.29 yen against 133.17 yen the previous day.

The ICE index showing the movement of the dollar against six currencies (euro, Swiss franc, yen, Canadian dollar, British pound and Swedish krone) was down 0.05%. The broader WSJ Dollar Index lost 0.14%.