2023.03.2108:52:00UTC+00U.S. Dollar Advances As Fed Meeting In Focus

The U.S. dollar was higher against its major counterparts in the Asian session on Tuesday, as investors looked ahead to the Federal Reserve policy meeting for more clues on the rate-hike trajectory in the future.

The Fed begins its two-day meeting later today and will announce the policy decision on Wednesday.

The central bank is expected to raise interest rates by 25 basis points 4.75-5.00 percent.

The Fed will also release its latest dot-plot projections on interest rates, inflation, unemployment and economic output.

Concerns over the banking crisis ebbed as investors digested a forced takeover of Credit Suisse by UBS over the weekend.

The greenback climbed to 1.2243 against the pound and 1.0703 against the euro, from its early lows of 1.2282 and 1.0726, respectively. The greenback is seen finding resistance around 1.19 against the pound and 1.05 against the euro.

The greenback advanced to 0.6676 against the aussie and 1.3699 against the loonie, up from its prior lows of 0.6726 and 1.3655, respectively. The next possible resistance for the currency is seen around 0.64 against the aussie and 1.38 against the loonie.

Reversing from an early low of 131.03, the greenback edged up to 131.74 against the yen. On the upside, 138.00 is possibly seen as its next resistance level.

The greenback touched 0.9317 against the franc, setting a 5-day high. The greenback is likely to find resistance around the 0.95 level.

The greenback was up against the kiwi, at a 4-day high of 0.6196. If the greenback continues its rise, 0.60 is possibly seen as its next resistance level.

Looking ahead, Eurozone construction output for January and German ZEW economic sentiment index for March are due out in the European session.

Canada CPI and U.S. existing home sales for February are scheduled for release in the New York session.