Euro Hits Monthly Low as Dollar Rises Ahead of Fed Decision

The Euro has fallen to its monthly low against the US Dollar during early European trading on Tuesday, weakening as the Greenback extends gains ahead of the Federal Reserve's policy announcement on Wednesday.

At press time, the US Dollar Index trades marginally higher, closer to its monthly high of around 101.59. The Fed is expected to leave interest rates unchanged in the range of 3.50%-3.75%, with a 62% chance of maintaining the status quo according to the CME FedWatch tool.

Investors will closely watch the monetary policy statement and Chairman Kevin Warsh's press conference for cues on inflation and economic outlook, but no forward guidance is expected as it has been deemed 'not well-suited in the current policy juncture' by Warsh.