Dollar Holds Steady Ahead of Federal Reserve Decision
The US dollar paused its climb on Wednesday but held near a one-month high ahead of the Federal Reserve's interest rate decision later in the day.
Hostilities in the Middle East flared anew, sending oil prices higher after the US and Saudi Arabia launched strikes on Iran-backed groups in Iraq. This move had little impact on currency markets, which were largely subdued as investors stayed on the sidelines.
The dollar index eased 0.15% to 101.27, while the euro inched up 0.14% to $1.1401 after falling to a one-month low in the previous session.
Sim Moh Siong, a strategist at OCBC, noted that 'what's clear is that the Fed is shifting in a more hawkish direction.' He believes that even if there is no rate hike, the messaging from the Fed will be crucial in determining the dollar's future performance.