The dollar index held near 2-week highs around 96 on Wednesday, but remained relatively subdued as investors looked ahead to the Federal Reserve meeting and press conference to gain some clarity on policy direction. The Fed is set to conclude its two-day meeting with an announcement at 2 pm ET on Wednesday, and although it is not expected to change policies, investors will look for hints on the schedule and extent of rate hikes and quantitative tightening.

Money markets are priced for a first rate hike in March, with three more quarter-point increases by year-end. Rising geopolitical tensions also buoyed the safe-haven dollar, with US president Joe Biden threatening to sanction Vladimir Putin if he orders an invasion of Ukraine.