US dollar edges up as traders await Fed announcement

The US dollar rose modestly in late trading on Tuesday as market participants eyed a key policy meeting of the Federal Reserve. The dollar index, which measures the greenback against six major peers, was up 0.02 per cent at 93.6955.

In late New York trading, the euro decreased to $1.1721 from $1.1749 in the previous session, and the British pound was up to $1.2943 from $1.2870 in the previous session. The Australian dollar was up to $0.7161 from $0.7141, Xinhua reported.

The US dollar bought 105.09 Japanese yen, lower than 105.38 Japanese yen of the previous session. The US dollar fell to 0.9174 Swiss franc from 0.9203 Swiss franc, and it was unchanged at 1.3360 Canadian dollars from the previous session.

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The US central bank kicked off its two-day policy meeting on Tuesday, followed by an interest rate decision on Wednesday.

"The Fed decision tomorrow is centre stage," Esther Reichelt, forex analyst at Commerzbank, said in a note on Tuesday.

"Even if tomorrow is unlikely to be the right moment for a more expansionary monetary policy approach, the Fed will no doubt sound prepared for further easing," Reichelt added.