Investing.com - The dollar was trading close to two-and-a-half month highs against the other major currencies on Wednesday as investors looked ahead to the Federal Reserve’s rate statement later in the day for indications on the timing of a rate increase.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 97.00, not far from Friday’s highs of 97.3.
The Fed was not expected to raise interest rates at the conclusion of its two day policy setting meeting later Wednesday, but many investors still expected the U.S. central bank to signal that rates could still rise at its December meeting.
Data on Tuesday showing that a key measure of U.S. business investment plans fell for a second straight month in September curtailed expectations for higher interest rates.
Orders for nondefense capital goods excluding aircraft, a proxy for company spending on equipment, fell 0.3% in September after a 1.6% decline in August.
Another report showed that U.S. consumer confidence declined this month.
The Conference Board's consumer confidence index fell to 97.6, missing forecasts of 103.0.
Demand for the dollar continued to be underpinned by diverging monetary policy expectations between the Fed and other world central banks.
EUR/USD was last at 1.1047 after weakening last week when the European Central Bank indicated that it could enlarge its stimulus program to bolster price growth in the euro zone.
USD/JPY was little changed at 120.35 as investors looked ahead to Fridays Bank of Japan meeting amid speculation over whether it will ramp up its stimulus program.