Approaching the moment of the FOMC's decision in the early hours of the morning, investors continue to be exposed to uncertain trading of the US dollar.
In the European session, the dollar index was slightly lower at around 105.08 against a group of major currencies.
The Federal Reserve (Fed) is widely expected to leave interest rates unchanged in the 5.25%-5.50% range, but the next move in November remains a question mark.
As a result, Chairman Jerome Powell's follow-up statement and the 'dot plot' used by the Fed to signal the outlook for interest rates, will be watched by investors.
Both indicators can trigger volatility in the currency market especially the US dollar in the upcoming New York session.
In the meantime, the market is now divided on the decision to be taken by the Bank of England (BOE) at its policy meeting tomorrow after looking at the latest inflation figures.
UK inflation defied market expectations by rising to 6.7% from 6.8% recorded in July, missing forecasts for a rebound to 7.0%.
Following that, the pound slid lower at the opening of the European session, trading bleakly at 1.2370 against the greenback.
Meanwhile, the euro currency is not far from a six-month low against the US dollar.
The Aussie and New Zealand dollars remained steady trading at around the same price, with investors focused on the release of New Zealand economic data due in the Asian session tomorrow.
The yen fell to its lowest level since November 2022 after touching the price level of 148.16 against the US dollar during the European session.
Also, the Canadian dollar traded flat against the greenback, capped by a drop in oil prices after hitting a 10-month high on Tuesday.
