Investing.com - The dollar fluctuated between small gains and losses the other major currencies on Wednesday as investors stayed on the sidelines ahead of the outcome of the Federal Reserve’s latest policy meeting later in the day.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 101.05, little changed for the day.
The Fed is widely expected to hike rates for the first time in a year, with investors pricing in a 100% chance of an increase, according to federal funds futures tracked Investing.com's Fed Rate Monitor Tool.
Investors will be focusing on the details of the central banks latest economic forecasts, the first since the U.S presidential election, for indications on the expected pace of rate hikes going forward.
Higher rates typically boost the dollar by making dollar assets more attractive to yield-seeking investors.
The euro was steady, with EUR/USD at 1.0625.
The dollar edged lower against the yen, with USD/JPY dipping to 115.12, holding below Monday’s highs of 116.12, the highest level since February 8.
The pound edged higher, with GBP/USD rising to 1.2672 ahead of the latest U.K. employment report later in the day.
The commodity linked currencies were also little changed, with AUD/USD at 0.7496 and NZD/USD at 0.7210. USD/CAD was trading at 1.3120.