The dollar index was steady during Wednesday's trading, as investors awaited the Federal Reserve's interest rate decision later in the day, amid widespread expectations of a 25-basis-point hike.
Kristine Kondby Nielsen, senior foreign exchange analyst at Danske Bank, said the dollar could find some support if the Fed decides to raise interest rates, although that decision is largely priced in by the markets, according to Reuters.
In the currency market, the euro remained near its lowest level in a month, which it recorded on Monday at $1.1523, while the pound sterling fell slightly after data showed that the UK's inflation rate had risen to its highest level in five months.
The dollar index, which measures the performance of the US currency against a basket of six major currencies, settled at 99.649 points.
The euro was trading at $1.154 against the dollar, virtually unchanged, while the British pound fell 0.10% against the US currency to $1.3467.
The dollar held steady against the yen at 155.10 yen, and also saw little change against the Swiss franc, settling at 0.8188 francs.
Currency markets are awaiting the Federal Reserve's decision and guidance on the course of monetary policy in the coming period, with investors focusing on any signals regarding the pace of interest rate movements in the future, given the continued inflationary pressures.
