Dollar Rises to One-Month High Ahead of Fed Meeting

The US dollar continued its upward trend ahead of this week's Federal Reserve policy meeting, reaching a one-month high as investors weigh the likelihood of an interest rate increase.

The US dollar index edged up 0.03% to 101.55, while the euro slipped 0.01% to USD 1.1366 and sterling fell 0.02% to USD 1.3284.

Lower oil prices following the United States' temporary suspension of military strikes against Iran have eased inflationary pressures, but US Treasury yields declined only marginally, supporting the dollar's strength.

CME FedWatch reports a 36.3% probability of a 25-basis-point rate increase at this week's meeting, up from 16% last week, with an 81% probability of a rate increase at the September meeting.