Dollar Holds Firm Ahead of Fed Decision Amid Renewed Middle East Tensions

The US dollar remained near its one-month high on Wednesday as renewed tensions in the Middle East pushed oil prices up, ahead of the Federal Reserve's interest rate decision and guidance.

The Australian dollar declined after inflation data came in below expectations, reducing the chance of further rate hikes from the Reserve Bank of Australia. It was 0.37% lower at $0.69475.

Sim Moh Siong, a strategist at OCBC, said 'Going to the meeting itself, I think what's clear is that the Fed is shifting in a more hawkish direction.' He expects no hike but thinks the messaging will be more important than the decision.