Dollar Index Dips Ahead of Fed Meeting

The US Dollar Index (DXY) dipped back to 101.30 as investors took a breather before the Federal Reserve's two-day meeting, which is expected to keep interest rates unchanged.

The index had risen to its highest level this month but met resistance at the 101.60-101.70 band, an area near its yearly high of 101.80 recorded in late June.

The pullback was seen as a correction after three consecutive daily advances, and analysts noted that the US Dollar's short-term outlook remains constructive, with room for further gains.