The dollar index held above 105 on Tuesday, hovering near its highest levels in six months as investors braced for the Federal Reserve’s policy decision this week. The US central bank is widely expected to hold interest rates steady on Wednesday, while investors will focus on the Fed’s outlook on inflation and its next policy steps. Last week, mostly positive US economic data raised hopes that the Fed could engineer a soft landing even if it keeps interest rates higher for longer. Investors now look ahead to S&P Global PMI figures in the US, as well as several housing indicators. Markets also await key interest rate decisions from the Bank of England and the Bank of Japan this week. The dollar held steady against most major currencies, but strengthened slightly against the Japanese yen and the Chinese yuan.
