Dollar Holds Near One-Month High as Traders Await Fed Decision

The US dollar paused its climb on Wednesday but held near a one-month high as traders awaited a Federal Reserve interest rate decision later in the day.

Oil prices rose after the US and Saudi Arabia launched strikes on Iran-backed groups in Iraq, citing responsibility for drone attacks on Saudi oil facilities.

The dollar index eased 0.15% to 101.27, while the euro inched up 0.14% to $1.1401. Sterling edged 0.06% higher to $1.3298 but remained near its weakest level since July 1.

Australia's currency slid after data showed domestic consumer prices rose at a slower pace in the June quarter, reducing the chance of further rate hikes from the Reserve Bank of Australia.