Dollar Higher Ahead Of Fed Decision

The U.S. dollar was broadly higher against most major opponents in European deals on Wednesday, as the traders await the outcome of the Federal Reserve's monetary meeting due later in the day, for clues regarding its interest rate hike.

The Federal Reserve is scheduled to release the post meeting policy statement and updated forecasts at 2 pm ET. This will be followed by Fed Chair Janet Yellen's customary press conference at 2:30 pm ET.

Most market participants expect the Fed to change its forward-looking policy statement by removing language that it expects to keep interest rates low "for a considerable period."

Strong economic growth in the third quarter and sustained strength in labour market could press the policy makers to go ahead with their plan, notwithstanding low inflation rate.

The Fed is expected to raise its rate in mid-2015, according to its September forecasts.

The greenback was lower on Tuesday overnight, amid weak housing data and on global growth concerns.

After advancing to 117.49 against the yen in early European deals, the greenback consolidated around the 117.00 range. The pair ended Tuesday's trading at 116.38.

The greenback rose to 0.9648 against the Swiss franc and 1.2445 against the euro, compared to yesterday's closing values of 0.9597 and 1.2508, respectively. The next possible resistance levels for the greenback may be found around 0.975 against the franc and 1.23 against the euro.

On the flip side, the greenback that reversed from an early high of 1.5676 against the pound edged down to 1.5735, and held steady thereafter. The pair finished yesterday's trading at 1.5747.

Bank of England policymakers decided to leave its key rate at a historic low of 0.50 percent in a split vote for the fifth straight time at the meeting held on December 3 and 4.

The Monetary Policy Committee voted 7-2 to retain its key rate at 0.50 percent. Ian McCafferty and Martin Weale sought a 25 basis-point hike for the fifth straight meeting.

Looking ahead, U.S. CPI for November and Canada wholesale sales for October are due in the New York session.