Dollar Holds Steady Ahead of Fed Decision as Oil Prices Rise

The US dollar held steady on Wednesday ahead of the Federal Reserve's interest rate decision. Despite reaching a one-month high, the dollar index eased 0.15% to 101.27. Oil prices rose after the US and Saudi Arabia launched strikes on Iran-backed groups in Iraq.

Investors remained cautious as they waited for the Fed's announcement, with markets pricing in a roughly 30% chance of a 25-basis-point hike. The euro edged up 0.14% to $1.1401 after falling to a one-month low earlier this week.

The Australian dollar fell 0.28% to $0.6954 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.