Dollar Pauses Ahead of Fed Decision Amid Rising Oil Prices

The US dollar paused its climb on Wednesday but held near a one-month high as traders awaited a Federal Reserve interest rate decision later in the day.

A series of strikes by the US and Saudi Arabia on Iran-backed groups in Iraq sent oil prices higher, after the groups were blamed for drone attacks on Saudi oil facilities.

Currency movements were largely subdued ahead of the Fed's decision, with markets pricing in a roughly 30% chance of a 25-basis-point hike.

The dollar index eased 0.15% to 101.27, while the euro was nursing losses after falling to a one-month low in the previous session, inching up 0.14% to $1.1401.