The dollar traded higher against major currencies despite data showing US economic growth slowed much less than expected in the third quarter, according to a Commerce Department report on Wednesday.

US GDP rose more-than-expected in the third quarter

The Commerce Department said real GDP rose 1.9 per cent in the third quarter after rising 2.0 per cent in the second quarter. Economists had expected GDP growth to slow to 1.7 percent.

Stronger-than-expected GDP growth reflects positive contributions from consumer spending, government spending, residential fixed investment, and exports. However, negative contributions from non-residential fixed investment and private equity investment have limited the upside along with an increase in imports, which is a subtraction in the calculation of GDP.

Treasury yields are low ahead of the US interest rate decision

US Treasury yields fell on Wednesday as investors await the Federal Reserve's interest rate decision due later in the day as markets expect the Fed to cut interest rates for the third time this year.

The two-year bond yield was unchanged at 1.642% at 9:18 am ET. Meanwhile, the 10-year Treasury yield fell by 0.004 basis points to 1.831% at 9:22 pm ET and the 30-year Treasury yield lost 0.008 basis points and was at 2.323% at 9:23 pm ET.

The corresponding bond futures were 0.01%, 0.06% and 0.22% in green, respectively.

Dollar trades against currencies

• The dollar index, which tracks the performance of the greenback versus a basket of major currencies, rose at 97.73 points
• The euro fell 0.04% against the dollar to trade at 1.1107 dollars
• Against the yen, the greenback edged up 0.03% to 108.93 Yen,
• GBP / USD edged higher to trade the GBP at 1.2876.