Investing.com - The dollar moved higher against the euro and the yen on Tuesday ahead of the start of the Federal Reserve’s two day policy setting meeting later in the trading day.
EUR/USD was down 0.29% to 1.1056, off Monday’s two-week highs of 1.1128.
The dollar regained ground as investors awaited Wednesday’s Fed statement to see if policymakers will give any indication on the timing of an initial rate hike.
Fed Chair Janet Yellen has said the central bank could raise rates as soon as September if the economy continues to improve as expected.
The U.S. was to release figures on second quarter growth on Thursday, which were expected to show that the economy rebounded following a contraction in the first quarter following in unusually harsh winter.
The greenback was also boosted as an ongoing selloff in Chinese equity markets sapped demand for riskier assets.
Stocks in Shanghai posted their largest one day decline in eight years on Monday and continued to fall on Tuesday, despite expectations for more government support.
USD/JPY rose 0.30% to 123.60, rebounding from Monday’s lows of 123.00.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.21% to 96.84.