Dollar Holds Firm Near One-Month High Ahead of Fed Decision

The US dollar index held steady near a one-month high in early Tokyo trading on Wednesday as markets awaited the Federal Reserve's latest interest rate decision.

The dollar index last traded at 101.43, with major currency pairs showing limited movement due to renewed Middle East conflict and policy uncertainty.

The dollar continued to press toward the 164 level against the yen, ticking up to ¥163.88 (approximately $1.0009), raising concerns that Japanese authorities may intervene in the currency market if it breaches this threshold.

According to the CME FedWatch tool, markets are currently pricing in a roughly 33% probability of a 25 basis point rate hike from the Fed at this meeting, with a hold remaining the primary expected scenario.