Dollar Holds Firm as Fed Decision Looms Ahead of Key Central Bank Meetings

The U.S. dollar held steady near multi-week highs on Wednesday, while Asian currencies traded mixed in anticipation of key rate decisions from major central banks.

Markets are expecting the Federal Reserve to raise interest rates later in the day, which has driven up demand for the dollar and pushed it near 99.59.

The yen slipped marginally against the dollar after falling to a one-week low of 155.49 earlier in the session, while the EUR/USD pair rose 0.07% to 1.15.

Meanwhile, the Bank of England is set to announce its policy decision on Thursday, with markets currently leaning towards a hold despite a renewed rise in UK inflation.