The U.S. Dollar held on during rough trade on Wednesday following its largest rise in weeks as the Federal Reserve signalled possible further aggressive rate hikes.

By afternoon trading in Asia, the U.S. Dollar index edged down around 0.3% to 106.120, Reuters news agency reports, on relief that U.S. House of Representatives Speaker, Nancy Pelosi’s visit to Taiwan triggered no surprises.

Elsewhere, the Euro rose 0.2% to $1.1085, despite remaining under pressure, whilst the Japanese Yen regained some of its overnight losses to rise 0.3% to 132.71 against the Dollar.

Nancy Pelosi said of her visit to Taiwan that it shows America’s steadfast commitment to the island, despite China condemning the visit as a threat to peace and stability.

“The market got a bit more relaxed, perhaps over the U.S.-China situation,” according to Moh Siong Sim, currency strategist at Bank of Singapore. "I think the market was bracing probably for a worse outcome, maybe no news is good news."

Federal Reserve officials, Mary Daly and Charles Evans said on Tuesday that they are "completely united" in regard to hiking rates to a level that will considerably limit economic activity.

According to Commonwealth Bank of Australia strategist, Kristina Clifton, the comments by "the normally very dovish Daly" and "the equally very dovish Evans" pushed the Dollar and yields higher, with the Dollar index perhaps topping 108 in the coming weeks.

Moreover, the Pound rose 0.2% on Wednesday to $1.2180, whilst the Australian Dollar remained near lows reached on Tuesday. The Reserve Bank of Australia’s indication of a slowdown or pause in the pace of future rate hikes led the Aussie to decline, last trading at $0.6930. The New Zealand Dollar also edged down following a shock rise in unemployment impacting rate hike forecasts, and at the time of writing was trading at $.06255.