The U.S. dollar advanced against its major rivals in early European deals on Wednesday, as investors awaited the minutes from the Federal Reserve's December meeting for more clues about the rate hike plan in this year.

The minutes, due at 2:00 pm ET, may provide more clues on the Fed's next move in the light of sluggish inflation.

At the December 12-13 meeting, the Fed raised the Federal funds rate by an additional 25 basis points, to a target rate of 1.25 to 1.50 percent.

The Fed's dot plot of interest-rate projections had showed the median forecast is still for three rate rises this year.

ADP private payrolls data and weekly jobless claims will be released tomorrow, due to the holiday shortened week.

They will be followed up by the release of key U.S. jobs report for December, which is slated for Friday. Factory orders, international trade and the ISM non-manufacturing index are also set to be released at the end of the week.

The greenback edged up to 0.9731 against the franc, from a low of 0.9711 hit at 6:30 pm ET. The next possible resistance for the greenback-franc pair is seen around the 0.985 region.

The greenback was trading in a positive territory against the yen with the pair trading at 112.33. The greenback is seen finding resistance around the 114.5 level.

The greenback bounced off to 1.2031 against the euro and 1.3588 against the pound, from its early low of 1.2066 and a 3-1/2-month low of 1.3613,respectively. If the greenback rises further, 1.19 and 1.33 are likely seen as its next resistance levels against the euro and the pound, respectively. Looking ahead, U.S. construction spending for November, ISM manufacturing index for December and FOMC minutes of December 12-13 meeting are set for release in the New York session.

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