U.S. Dollar Rallies On Banking Fears

The U.S. dollar advanced against its most major counterparts in the European session on Wednesday amid risk aversion, as shares of Credit Suisse tumbled after its top shareholder ruled out providing more funds to the troubled lender.

Credit Suisse shares slumped after a report from Reuters showed Saudi National Bank, the bank's largest investor, refused to inject any more money into the Swiss bank.

Credit Suisse's troubles came on the heels of the collapse of Silicon Valley Bank and Signature Bank in the U.S.

Data from the Labor Department showed that U.S. producer prices unexpectedly edged slightly lower in the month of February.

The producer price index for final demand slipped by 0.1 percent in February after rising by a downwardly revised 0.3 percent in January.

The greenback climbed to a 5-day high of 1.2041 against the pound and more than a 2-month high of 1.0522 against the euro, from an early low of 1.2181 and a multi-week low of 1.0759, respectively. The greenback is seen finding resistance around 1.19 against the pound and 1.03 against the euro.

The greenback edged up to 0.6632 against the aussie and 0.6188 against the kiwi, from its prior 2-day lows of 0.6711 and 0.6264, respectively. The next possible resistance for the currency is seen around 0.64 against the aussie and 0.60 against the kiwi.

The greenback was up against the franc, at a 5-day high of 0.9256. If the greenback continues its rise, 0.94 is possibly seen as its next resistance level.

The greenback touched 1.3782 against the loonie, setting a 2-day high. The greenback is likely to find resistance around the 1.41 level.

The greenback, meanwhile, fell to a fresh 4-week low of 132.21 against the yen, reversing from a 5-day high of 135.11 seen in the previous session. The currency may test support around the 129.00 region.