Dollar Soars Near One-Month Highs as Fed Decision Looms

The U.S. dollar strengthened near one-month highs on Wednesday ahead of the Federal Reserve's interest-rate decision, which investors are anticipating could be a surprise hike.

Oil prices rose due to escalating tensions in the Middle East after joint strikes by the U.S. and Saudi Arabia against Iran-backed groups in Iraq.

The dollar index, tracking the U.S. currency against six others, was up 0.05% at 101.46, its highest level since June 25.

Daragh Maher, senior FX strategist at HSBC, said that if policy remains unchanged, the dollar may weaken, but a hike would be a 'clearer bull signal' for the currency.