According to the CME FedWatch tool, trades are confident that the Fed will certainly announce a pause to the current policy-easing cycle by leaving interest rates unchanged in the range of 4.25%-4.50%. Therefore, the impact of the Fed’s policy decision on the US Dollar won’t last long.

The U.S. dollar was firmer against major currencies on Wednesday as investors awaited the Federal Reserve's monetary policy decision, as well as clues on the trajectory of interest rates this year. The Fed is widely expected to hold interest rates steady at the end of its first policy meeting of the year on Wednesday.