Dollar Eases Ahead of Fed Decision Amid Global Market Volatility
The US Dollar experienced a slight decline on Tuesday as investors adjusted their positions ahead of the Federal Reserve's decision on Wednesday. The Dollar Index slipped about 0.1% to near 101.40, while staying close to its recent monthly high.
The EUR/USD pair rose around 0.2% to about 1.1390, and the GBP/USD held steady near 1.3290 ahead of the Bank of England's interest rate decision, which is expected to remain unchanged. The USD/JPY edged up towards 163.84, pushing the Yen closer to multi-decade lows.
In commodities, WTI crude oil dropped more than 3.5% to around $79 a barrel, and gold slid about 1.2% to near $4,027 per troy ounce. Analysts are advising traders to prepare for heightened volatility in the coming weeks due to a 40% chance of a surprise Fed rate hike.