Dollar gains before Fed rates decision

The dollar headed for its largest monthly gain since September as the Federal Reserve is expected to take decision regarding interest rates at 1900 GMT, Reuters reported on Wednesday.

The dollar index rose 0.1 per cent to 103.51 on the day, gaining 2.1 per cent against a basket of major currencies this month.

The Aussie dollar down as much as 0.5 per cent to $0.6560 due to a sharp slowdown in the country’s inflation.

The euro was last down 0.2 per cent at $1.0829, while sterling was down a similar amount to $1.2680 before the Bank of England’s policy announcement on Thursday.

The Federal Reserve is expected to hold U.S. interest rates steady on Wednesday but flag cuts are coming by dropping language indicating it is weighing further hikes.