Dollar Holds Firm Ahead of Fed Rate Decision

The US dollar has maintained its strength in recent trading sessions, hovering near multi-week highs against major currencies. This stability comes as investors await the Federal Reserve's decision on monetary policy, with many expecting a potential series of interest rate hikes.

Overnight, the dollar and US Treasury yields rose significantly, leading to notable gains against the yen and New Zealand dollar. The kiwi fell to a two-month low of $0.5749 in Asian trading, while the yen weakened to a one-week low of 155.43 per dollar.

The euro remained relatively unchanged at $1.1535, close to its one-month low of $1.1523 hit on Monday. Sterling also traded near its six-week low, priced at $1.3470 after touching $1.3464 on the same day.