U.S. Dollar Higher As Fed Meeting In Focus

The U.S. dollar climbed against its major counterparts during European deals on Tuesday, ahead of a large rate hike from the Federal Reserve at the end of its two-day meeting on Wednesday.

The Fed kicks off its monetary policy meeting today and will conclude on Wednesday.

Markets are fully pricing in a 75 basis point rise in rates, although Fed funds futures show a slight chance of a full-point move.

The Fed is expected to raise the fed funds rate to 4.5 percent by early next year.

The 2-year treasury yield touched its highest level since 2007, reaching 3.97 percent. Yields move opposite to bond prices.

The greenback approached 143.82 against the yen, its strongest level since September 14. If the greenback climbs further, 145.00 is likely seen as its next resistance level.

The greenback rose to 0.9668 against the franc and 0.9979 against the euro, from a previous 4-day low of 0.9623 and a 1-week low of 1.0051, respectively. The greenback is likely to challenge resistance around 0.98 against the franc and 0.96 against the euro.

The greenback jumped to 0.5901 against the kiwi, setting nearly a 2-1/2-year high. The greenback may locate resistance near the 0.57 area.

The greenback edged up to 0.6693 against the aussie and 1.3301 against the loonie, off an early 5-day low of 0.6747 and a 4-day low of 1.3227, respectively. The greenback is seen finding resistance around 0.64 against the aussie and 1.36 against the loonie.

The greenback rebounded to 1.1406 against the pound, from a 4-day low of 1.1461 hit at 8 pm ET. On the upside, resistance is likely seen near the 1.13 level.