🔻Limited fall in the dollar ahead of the US central bank decision; oil prices rise after attacks in Iraq

🔻The value of the US dollar decreased slightly on Wednesday, but remained within the familiar ranges of recent days against major currencies.

This comes as investors await the US central bank’s decision on interest rates, and some analysts do not rule out the possibility of a rate increase.

At the same time, with fighting resuming in the Middle East and joint US and Saudi attacks on Iran-backed groups in Iraq, oil prices rose.

However, currency market volatility remained limited, and investors largely refrained from large transactions ahead of the announcement of the Federal Reserve’s Open Market Committee decision. Markets currently estimate a roughly 36% chance that the US central bank will raise interest rates.

The dollar index, which gauges the value of the currency against a basket of six major currencies, fell by 0.04% to 101.38.

Kyle Chapman, a currency market analyst at Ballinger Group in London, said that assessing the outcome of today’s US central bank meeting is “very difficult,” and the most likely scenario is to keep interest rates unchanged with a tone leaning toward contractionary policies.

The euro rose 0.03% to $1.138875. The pound was traded at roughly unchanged levels at $1.32925, but still remained near its lowest level since early July. The Canadian dollar also strengthened by 0.2% against the US dollar.

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