Dollar dips ahead of US inflation data, central bank meetings

The dollar has weakened slightly and traded within a tight range in anticipation of the US Federal Reserve’s anticipated announcement on interest rates. The body is expected to announce its interest rate decision on Wednesday with markets marking an 80% chance of rates remaining the same. Sterling rose 0.07% to $1.2520, following hawkish comments from Bank of England policymakers who said interest rates could rise further if inflation remained resilient. Meanwhile, the euro rose 0.04% to $1.0760, ahead of Thursday’s interest rate decision from the European Central Bank.