Dollar Steady as Fed Decision Looms Amid Middle East Tensions

The US dollar remained stable near its one-month high on Wednesday as tensions flared in the Middle East, awaiting a key Federal Reserve interest rate decision later in the day.

The Australian dollar fell after inflation data came in below expectations, reducing the likelihood of further rate hikes from the Reserve Bank of Australia. The Aussie declined by 0.37% to $0.69475.

Investors were cautious ahead of the Federal Open Market Committee's decision, with markets pricing a 33% chance of a 25-basis-point hike. Oil prices surged after the US military intercepted multiple ballistic missiles launched by Iran towards US forces in the Middle East.

Sterling and the euro slipped, inching up 0.03% to $1.1389 and easing 0.03% to $1.3287, respectively. The New Zealand dollar declined by 0.08% to $0.5783.