Dollar Steadies Near One-Month High Ahead of Fed Interest Rate Decision

The US dollar has steadied near its one-month high ahead of the Federal Reserve's interest rate decision later in the day. Investors are waiting for the Federal Open Market Committee's decision, with markets pricing in a roughly 33% chance of a 25-basis-point hike.

As traders await the Fed's decision, currency moves have been largely subdued. The euro has fallen to a one-month low and is nursing losses, down 0.3% to $1.1386. Sterling has edged 0.06% higher to $1.3282 but remains near its weakest level since July 1.

The dollar index, which measures the currency against a basket of peers, eased to 101.43. The yen strengthened to 163.88 per dollar, but is not far from a 40-year low. Other currencies have also been affected by the uncertainty, with the Australian dollar little changed at $0.6973 and awaiting local inflation data, while the New Zealand dollar fell 0.09% to $0.5782.