The U.S. dollar appreciated against its key counterparts in the Asian session on Wednesday, amid rising tensions between Washington and Beijing after a media report that the Trump administration is mulling fresh sanctions on China.

Bloomberg reported that the Treasury Department is weighing economic sanctions on Chinese officials, businesses and financial institutions, if a proposed Chinese crackdown goes ahead.

U.S. President Donald Trump said late on Tuesday the country was working on a strong response to China's planned national security legislation for Hong Kong, without giving further details. He indicated that details would be released before the end of the week.

In Hong Kong, hundreds of riot police ringed the city's legislature to stifle any protests ahead of a debate over a bill that would criminalize disrespect of China's national anthem.

Beijing has reportedly expanded the scope of the draft national security legislation to include banning not just behavior or acts that endanger national security, but also activities.

Investors await regional factory figures and the Federal Reserve's "beige book" of economic conditions due later in the day.

The greenback rose to 1.2304 against the pound, from a low of 1.2339 hit at 5:15 pm ET. The greenback is seen finding resistance around the 1.21 level.

The greenback edged up to 1.0951 against the euro, after falling to 1.0985 at 7:30 pm ET. The greenback is likely to find resistance around the 1.08 level.

The USD/CHF pair was trading higher at 0.9673. On the upside, 1.00 is likely seen as its next resistance level.

The greenback ticked up to 0.6631 against the aussie and 0.6179 against the kiwi and held steady thereafter. If the greenback rises further, 0.62 and 0.585 are likely seen as its next resistance levels against the aussie and the kiwi, respectively.

The greenback recovered to 107.62 against the yen, from a 5-day low of 107.37 set earlier in the session. Next key resistance for the greenback is seen around the 112.00 mark.

In contrast, the greenback fell against the loonie with the pair trading at 1.3780. The currency may locate support around the 1.33 level.

Looking ahead, Canada building permits for April and Fed's Beige book report are set for release in the New York session.

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