U.S. Dollar Higher As Fed Meeting Nears

(RTTNews) - The U.S. dollar advanced against its major counterparts during European deals on Monday, as investors awaited the Federal Reserve's interest rate decision due this week amid expectations for another super-sized hike to fight inflation.

The Federal Reserve will announce its interest rate decision on Wednesday, with investors expecting a 0.75 percentage point rate hike for the third consecutive meeting.

Apart from the Fed, market participants will focus on central bank meetings in Japan, U.K. and the Switzerland.

European markets fell on concerns about more aggressive rate hikes by major central banks and its impact on global growth.

U.S. treasury yields rose, with the benchmark 2-year yield touching 3.925 percent. Yields move opposite to bond prices.

The greenback touched a 10-day high of 0.9696 against the franc. The greenback may locate resistance near the 0.98 area.

The greenback was up against the loonie, at nearly a 2-year high of 1.3324. Next key resistance for the greenback is seen around the 1.35 region.

The greenback edged up to 1.1355 against the pound and 0.9966 against the euro, off its early lows of 1.1442 and 1.0029, respectively. The greenback is seen finding resistance around 1.11 against the pound and 0.97 against the euro.

The greenback rose to 0.5942 against the kiwi and 0.6672 against the aussie, up from its previous 4-day lows of 0.6002 and 0.6734, respectively. The greenback is likely to challenge resistance around 0.57 against the kiwi and 0.64 against the aussie.

The greenback reversed from an early 5-day low of 142.64 against the yen and climbed to 143.57. If the greenback climbs further, 145.00 is likely seen as its next resistance level.

Looking ahead, Canada industrial product and raw materials price indexes for August and U.S. NAHB housing market index for September will be released in the New York session.