U.S. Dollar Falls On Donald Trump's Tariff Plan

The U.S. dollar weakened against other major currencies in the European session on Wednesday, as investors ponder over U.S. president-elect Donald Trump's tariff plans and await the Fed's preferred readings on consumer price inflation later in the day for additional clues on the Fed's rate trajectory.

Trump on Tuesday named another China sceptic, Jamieson Greer, his trade envoy, a key figure in implementing the president-elect's economic agenda.

"Jamieson played a key role during my first term in imposing tariffs on China and others to combat unfair trade practices, and replacing the failed NAFTA deal with USMCA, therefore making it much better for American Workers," Trump said.

Also, Trump appointed Kevin A Hassett as the director of the White House National Economic Council.

As Chair of the Council of Economic Advisers, Hassett played a crucial role in helping design and pass the Tax Cuts and Jobs Act of 2017 and stood with me as we pursued our enormously successful agenda to Make America Great Again, Trump said in a separate statement.

Traders await the October Personal Consumption Expenditures (PCE) price index due later today and the Thanksgiving holiday on Thursday.

In the European trading today, the U.S. dollar fell to a 3-week low of 151.84 against the yen, from an early high of 153.03. The greenback may test support around the 150.00 region.

Against the euro, the pound and the Swiss franc, the greenback edged down to 1.0505, 1.2598 and 0.8841 from early highs of 1.0474, 1.2567 and 0.8862, respectively. If the greenback extends its downtrend, it is likely to find support around 1.06 against the euro, 1.27 against the pound and 0.86 against the franc.

Looking ahead, the market research group GfK releases Germany's consumer confidence survey data for December at 4:30 am ET. The forward-looking consumer sentiment index is expected to fall to -18.8 in December from -18.3 in November.

In the New York session, U.S. weekly mortgage approvals data, U.S. Core PCE price index for October, personal income and spending for October, durable goods orders for October, pending home sales for October, U.S. Chicago PMI for November, U.S. EIA crude oil data and U.S. Baker Hughes oil rig count data are slated for release.