2023.06.1220:59:00UTC+00Dollar Gains Against Major Counterparts Ahead Of Fed Policy Meeting

After falling somewhat sharply in the Asian session, the U.S. dollar recovered on Monday as traders looked ahead to the Federal Reserve's monetary policy meeting, scheduled to take place on Tuesday and Wednesday.

The Fed is widely expected to pause its recent interest rate increases.

The central bank's accompanying statement as well as key U.S. consumer inflation data are eyed for clues about the outlook for interest rates.

CME Group's FedWatch Tool currently indicates a 71.2 percent chance the Fed will leave rates unchanged on Wednesday, but a 28.8 percent chance of another quarter point rate hike in July.

The European Central Bank is widely expected to hike rates by 25 basis points on Thursday. The Bank of Japan and the People's Bank of China are also scheduled to announce their monetary policies this week.

The dollar index, which dropped to 103.24 in the Asian session, rallied to 103.76 later on in the day, and was last seen at 103.62, up marginally from the previous close.

Against the Euro, the dollar has firmed to 1.0759 after having weakened to 1.0793 earlier. The dollar is up against Pound Sterling at 1.2515.

Against the Japanese currency, the dollar is up at 139.60 yen. The Aussie is slightly stronger against the dollar at 0.6751. Against Swiss franc, the dollar has firmed to CHF 0.9086. The dollar is up against the loonie at C$ 1.3366.