Dollar Holds Steady Ahead of Fed Rate Decision

The US Dollar held steady near a two-week high of 99.60 in early European trading on Wednesday, ahead of the Federal Reserve's interest rate decision.

Markets are pricing in nearly a 92.4% probability that the Fed will raise interest rates by a quarter of a percentage point at its September policy meeting, according to the CME FedWatch tool.

The US 10-year Treasury yield has risen to 5.00%, while the 2-year yield climbed to 4.66%, supporting the dollar's strength.

The European Central Bank emphasized it won't pre-commit to further steps after raising rates for a second time since the Iran war started, keeping the Euro relatively tight.