Dollar firms in cautious trading ahead of Fed meeting

The dollar held on to gains made on Tuesday as caution dominated the currency markets ahead of major central bank gatherings, starting with the Federal Reserve’s two-day meeting that will start later in the day.

The dollar lingered below its highest level since June against the yen. It stood at $1.19 on the euro in quiet trading.

The firmer stand for the dollar came despite a decline in U.S. yields ahead of the Fed meeting. The dollar index traded at 91.798 following a 0.2% gain on Monday.

The dollar was little changed at 109.170 versus the yen after climbing to a nine-month high of 109.365 on Monday. 

The euro was flat at $1.19330, hovering below $1.20 since March 5. Europe’s vaccine rollouts were hampered by a suspension of Astrazeneca shots in France, Germany, and other nations due to worries about potentially serious side effects.

The pound slid 0.2% to $1.3871 ahead of a central bank meeting on Thursday. The Aussie and the kiwi were little changed against the greenback.