London—The dollar edged up on Wednesday as euro-dollar volatility hit the highest level of the year in response to worries about the Omicron variant, while the dollar found support in renewed expectations for interest rates hikes. The dollar index rose 0.03 percent to 95.997 at 0920 GMT, after it registered its strongest month since June, despite volatility triggered by Omicron. Euro/dollar volatility levels have reached the highest level this year with the euro climbing to a two-week high on Tuesday, before losing ground as the dollar strengthened. “Realised one-month EUR/USD volatility has spiked to the highest levels of the year as fears over Omicron, but hawkish comments from Fed Chair Powell throws the dollar around,” ING told clients. Federal Reserve chair Jerome Powell signaled the central bank may speed up the pace of its bond-buying taper at its meeting later this month. He also told lawmakers it was time to …