U.S. Dollar Steady as Fed Awaited

The dollar was steady in early Asian trade on Tuesday, with traders adopting a cautious stance as they wait for the outcome of the U.S. Federal Reserve’s two-day policy meeting that takes place amid the backdrop of a looming crisis in Greece.

A bright employment report last month as well as an uptick in wage inflation have heightened speculation that the Fed may begin raising interest rates as early as September. That has kept investors abuzz as they look to policy clues from Fed Chair Janet Yellen’s post-meeting news conference on Wednesday.

However, a hawkish policy statement is far from a given. U.S. data overnight showed that industrial production unexpectedly fell in May as manufacturing and mining activity remained weak, a sign that a strong dollar continued to constrain economic growth.