NEW YORK (TheStreet) -- The euro, UK pound sterling and Australian dollar were gaining steam against the greenback on hawkish views on inflation and talk of an Australian mining boom.

The Australian dollar was advancing 0.4% at $1.0025.

The euro was rising 0.6% at $1.3728 Wednesday morning, while the UK pound was up 0.6% at $1.6235.

"As price pressures intensify, the Monetary Policy Committee may continue to show an increased willingness to withdraw monetary stimulus, and speculation for higher borrowing costs should drive the British Pound higher as investors weigh the prospects for future policy," DailyFX analyst David Song said in a report.

Minutes from the Bank of England's Feb. 9 to 10 meeting -- published Wednesday -- revealed that a third policymaker, chief economist Spencer Dale, has joined Andrew Sentance and Martin Weale in voting for interest rate hikes. Other policymakers indicated that they were open to tightening monetary policy depending on the pace of economic recovery.

The euro advanced against the U.S. dollar as the markets digested hawkish rhetoric on inflation from the European Central Bank, but was expected to face headwinds.

Song noted in his report that currency traders may turn bearish against the euro if European Union policymakers fail to deliver a solid solution to address the region's sovereign debt crisis. Eurozone leaders hold a summit on March 11 and conversations about eurozone debt contagion risks are expected to return to the forefront during the event.

"The euro maintained a firmer tone, as the European Central Bank continues its hawkish rhetoric, but it struggled to sustain buying momentum, suggesting that the dollar may be in store for a technical rally in the North American session," Brown Brothers Harriman Global Head of Currency Strategy Marc Chandler noted in a daily report.

The Australian currency was rising against the greenback after the The Reserve Bank of Australia's Governor Glenn Stevens said mining investment in the country could grow by up to 2% of gross domestic product over the next couple of years.

"If it occurs, this will be by far the largest such expenditure of a capital nature in the resources sector in Australia's modern history," Stevens said in a speech addressing an economic conference in Melbourne. A significant proportion of the investment will be imported.

However, the central bank governor warned that the mining boom may not be indefinite and recommended conservative spending.

"With a large boost to income, we need to think about the balance between saving and spending, because we do not know the permanent level of the terms of trade," he said.


CurrencyShares Euro Trust

(FXE) - Get Report

was rising 0.8% to $137.02 and the

CurrencyShares Australian Dollar Trust

(FXA) - Get Report

was up 0.2% to $100.25. The

CurrencyShares British Pound Sterling Trust

(FXB) - Get Report

was up 0.7% to $161.43.

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-- Written by Andrea Tse in New York.

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