Dollar Stays Firm Near One-Month High Amid Fed Rate Hike Speculation

The dollar has stabilized near a one-month high in Asian markets on Tuesday, with investors hesitant to make new bets ahead of the Federal Reserve's interest rate decision this week.

The US currency hovered around its highest level since mid-January against a basket of major currencies, despite falling oil prices easing inflation concerns.

Markets are pricing in roughly a 38% chance of a 25-basis-point Fed rate hike on Wednesday, which could influence Asian currencies.

The Japanese yen remained near multi-decade lows, with traders awaiting the Bank of Japan's decision on Friday for fresh guidance on policy normalization.