Dollar Edges Higher, Investors Await Fed's Next Move

The dollar edged higher on Wednesday, even as investors held off placing major bets ahead of the outcome of a US Federal Reserve meeting, keeping currency moves largely contained, Saqib Ahmed and Tom Wilson reported for Reuters.

The dollar index, which measures the greenback against a basket of six currencies, was 0.236% higher at 92.68. The dollar has enjoyed a month-long rally, with the dollar index up about 2.3% since the Fed's June meeting, after a hawkish shift from the US central bank.

Investors are eager to see whether the Fed will provide any clues on the timing of the tapering of its asset purchases.

"On days like this there is always a little bit of trepidation," said Minh Trang, senior FX trader at Silicon Valley Bank."It's kind of slow play till the news comes out," he said.

While foreign exchange analysts said the chances were high that the Fed would not shift policy, they were curious to hear more about the bank's thinking on the recent spike in inflation and on whether it thinks growing COVID-19 cases could derail the global recovery.

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