U.S. Dollar Steady Ahead of Fed

The dollar held on to its modest overnight gains in early Wednesday trade as traders look to any hints from the U.S. Federal Reserve on the timing and the pace of its future rate hikes.

Ahead of the Fed’s policy statement due at 1800 GMT, trading could be swayed by various month-end related flows, with Wednesday being the last trading day for settlement before month-end, traders said.

The dollar index stood at 96.651, having rebounded from a two-week low of 96.288 hit on Monday. The euro stepped back to from Monday’s high of $1.11295 to fetch $1.1065.