The dollar hovered below a one-month high compared with major peers on Tuesday ahead of a much-anticipated Federal Reserve meeting that could signal a change in the outlook for U.S. monetary policy.
Traders will be watching carefully for clues on when policymakers will start tapering dollar-depreciating stimulus. Nearly 60per cent of economists in a Reuters poll expect a tapering announcement in the next quarter, despite a patchy recovery in the job market.
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