US Dollar Holds Firm Near One-Month High Ahead of Federal Reserve Rate Decision
The US dollar consolidated near a one-month high on Wednesday as market participants refrained from taking major positions ahead of the Federal Reserve’s upcoming interest rate decision later today. Meanwhile, renewed escalation in Middle East tensions pushed crude oil prices higher.
Currency movements were largely range-bound as investors awaited the conclusion of the Federal Open Market Committee (FOMC) meeting. Financial markets are currently pricing in nearly a 30% probability of a 25-basis-point rate hike.
Dollar Index Performance
The US Dollar Index (DXY), which measures the greenback against a basket of six major currencies:
Dipped 0.15% to 101.27 points during early Wednesday trading.
Followed a peak of 101.63 points reached on Tuesday, marking its highest level since June 25.