Dollar Near One-Month High as Asian Currencies Trade in Tight Ranges

The US dollar hovered near a one-month high on Tuesday as Asian currencies traded in tight ranges. Investors were reluctant to take fresh positions before this week's Federal Reserve meeting, despite easing oil prices tempering inflation concerns.

The US Dollar Index slipped 0.1% to 101.46, while the Japanese yen's USD/JPY pair held near 164 yen. Markets continued to price roughly a 38% chance of a 25-basis-point Fed rate hike on Wednesday.

The South Korean won's USD/KRW pair was little changed despite a steep technology-led selloff in the country's equity market, while Taiwan's dollar underperformed as USD/TWD rose 0.4%. The Chinese yuan's offshore USD/CNH and onshore USD/CNY pairs traded largely unchanged.