TOKYO The dollar edged down on Wednesday as Asian investors reacted to overnight news of attacks in Brussels, though hawkish comments from another U.S. Federal Reserve official underpinned the U.S. currency.
Attacks on Brussels airport and a rush-hour metro train in the Belgian capital, which occurred very late in Tuesday's Asian session, killed dozens and triggered security alerts across western Europe.
The dollar index .DXY, which tracks the U.S. currency against six major rivals, edged down slightly to 95.611.
The dollar inched 0.1 percent lower against the perceived safe-haven yen to 112.26 JPY=. But it remained above Tuesday's low of 111.38 yen as well as a 17-month low of 110.67 touched last Thursday after Fed Chair Janet Yellen took a cautious tone on the timing of interest rate hikes this year.
Chicago Fed President Charles Evans said he expects two more rate increases this year, unless economic data comes in a lot stronger than expected or inflation picks up faster than anticipated.
Evans does not have a vote on policy this year, but he is known as one of the U.S. central bank's most dovish policymakers. His remarks followed comments from three other Fed officials on Monday that all suggested interest rate increase could be on the way sooner rather than later.
"Evans normally leans towards lower rates so it is interesting that he is happy to talk about two hikes this year, with markets only priced for one," Sean Callow, senior currency strategist at Westpac, said in a note.
Sterling edged up 0.1 percent to $1.4224 GBP= after falling more than 1 percent to one-week lows against the dollar following news of the attacks, on fears that more voters would favor Britain leaving the European Union in a June referendum.
(Reporting by Lisa Twaronite; Editing by Eric Meijer)