TOKYO: The dollar stood near a four-week high against a basket of currencies on Wednesday after strong U.S. wholesale price figures kept the Federal Reserve on track for a widely-expected rate rise this week and more in 2018.The dollar index stood at 94.071, having risen to 94.219 on Tuesday, its highest level since Nov. 14. Against the yen, the dollar fetched 113.55 yen, having risen to a four-week high of 113.75 yen on Tuesday.
The euro traded at $1.1737, having slipped to $1.17175 the previous day, which was its lowest level in three weeks. The Fed is almost unanimously expected to raise its interest rates target by 0.25 percentage point at the end of its two-day policy setting meeting on Wednesday.
Investors are focusing more on the Fed´s projection on the pace of its rate hikes next year and policymakers´ view on the outlook for inflation. The Fed will announce its decision on rates at 1900 GMT Wednesday followed by a statement.
Chair Janet Yellen will hold a news conference at 1930 GMT. While Fed policy makers´ projection in September suggested they expected three rate hikes in 2018, markets are pricing in only two, with many investors expecting tame inflation will lead to a slower tightening path.