Dollar Steady Amid Anticipation of Fed's Interest Rate Decision

The U.S. dollar remained steady on Wednesday, maintaining its overnight gains as traders anticipated important inflation data scheduled for release this week. Analysts believe these reports could play a crucial role in determining the size and scope of upcoming interest rate cuts by the Federal Reserve next week.

Recent economic data, including a disappointing jobs report, has reinforced expectations of a rate cut at the Federal Reserve's September meeting. Investors are speculating whether the reduction will be 25 or 50 basis points, with much depending on the potential impact of tariffs on inflation in the U.S. economy.

While traders largely expect a modest 25 basis point cut, geopolitical factors, including global political shifts and fiscal policies like Indonesia's recent cabinet changes, have also influenced market sentiments. The uncertainty leaves currency markets in a state of flux as investors await further signals from economic data and the Federal Reserve.

(With inputs from agencies.)