Dollar steady as investors brace for Fed decision in face of war

The dollar firmed on Wednesday as investors awaited a closely watched Federal Reserve ​rate decision in what was likely to be Chair Jerome Powell’s swan song, with war in the Middle East raging and ‌hopes for an imminent resolution dimming. Currencies held tight ranges in thinned Asia trade, with markets in Japan closed for a holiday and a slew of major central bank decisions still on deck. Against the dollar, the euro last bought $1.1716 while sterling was little changed at $1.3523, as both currencies edged further away from their highs hit earlier this ​month. The Fed’s policy outcome due later in the day takes centre stage, with the central bank widely expected to stand pat ​on rates, though the focus will be on its assessment of the war’s impact on the economy and on ⁠Chair Powell’s future. “The question is what Powell is going to do, because he still holds the governor seat until 2028, so whether he chooses ​to resign after the expiry of the Chair term or if he stays on as a governor and as sort of a shadow Chair,” ​said Carol Kong, a currency strategist at Commonwealth Bank of Australia.