Investing.com - The U.S. dollar was mixed against the other major currencies on Wednesday, as investors continued to focus on developments in Cyprus after the country's parliament rejected a proposed bank deposit tax, which formed part of a EUR10 billion international bailout deal.
During European morning trade, the dollar was fractionally lower against the euro, with EUR/USD adding 0.09% to 1.2893.
Cyprus's President Nicos Anastasiades called an emergency meeting with political leaders to look at alternatives after parliament rejected the terms of the bailout agreement.
Following the vote, the European Central Bank said it will provide liquidity to Cypriot banks within existing rules.
The euro found some support amid growing expectations that the European Union will renegotiate a deal with Cyprus to keep the country in the euro zone.
Earlier Wednesday, the European Centra Bank said its current account surplus narrowed to EUR14.8 billion in January from a surplus of EUR16 billion the previous month, compared to expectations for a decline to EUR7.9 billion.
A separate report showed that producer price inflation in Germany ticked down 0.1% last month, disappointing expectations for a 0.2% rise, after a 0.8% increase in January.
The greenback was also higher against the pound, with GBP/USD dropping 0.44% to 1.5029.
Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY adding 0.25% to trade at 95.40 and with USD/CHF edging up 0.09% to 0.9476.
The yen remained under pressure as Haruhiko Kuroda took over his role as Bank of Japan governor together with his two deputies on Wednesday, amid expectations that the bank's new leadership will implement more aggressive monetary easing measures aimed at combating deflation.
The greenback was mixed to lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD easing 0.10% to 1.0258, AUD/USD edging up 0.08% to 1.0378 and NZD/USD shedding 0.35% to 0.8218.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was flat at 83.16.
Investors were looking ahead to the outcome of the Federal Reserve's policy meeting later in the trading day, after data last week showing that U.S. inflation was contained left the way clear for the bank to continue its asset purchase program.
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