DXY Holds Below 101.50 as Markets Brace for FOMC Decision

The US Dollar Index (DXY) remained range-bound below the 101.50 level during Asian trading on Wednesday, as investors held back ahead of the Federal Reserve’s two-day policy meeting conclusion later in the day. The index, which measures the greenback against a basket of major currencies, showed little momentum as markets awaited fresh guidance on interest rates.

Geopolitical concerns tied to Iran added to the cautious tone, keeping the dollar in a consolidation pattern. Traders are watching whether the FOMC will signal a hawkish stance, which could give the DXY a lift, or a dovish tilt that might weigh on the currency.

Key levels to watch remain 101.50 as initial resistance, with support near 101.00. The dollar’s near-term direction hinges on the Fed’s language and any escalation in Middle East tensions.