U.S. Dollar Lower Ahead Of Fed Decision

(RTTNews) - The U.S. dollar declined against its major counterparts in the European session on Wednesday, as investors awaited the U.S. Federal Reserve's interest rate decision for clues on the path of future rate hikes this year.

The Fed is expected to deliver a 25 basis point interest rate hike, which will take the benchmark rate to a range between 5.25 percent and 5.5 percent.

Traders await Fed Chair Jerome Powell's press conference for hints on the central bank's rate path going forward.

Analysts remain divided over whether the U.S. central bank will signal a pause for September.

The benchmark yield on the 10-year note fell to 3.88 percent. Yields move inversely to bond prices.

The greenback declined to 0.8610 against the franc and 1.2924 against the pound, setting 6-day lows. The greenback is likely to challenge support around 0.84 against the franc and 1.32 against the pound.

The greenback was down against the euro, at 1.1086. If the currency falls further, 1.12 is likely seen as its next support level.

The greenback fell to 5-day lows of 140.17 against the yen and 0.6233 against the kiwi, from an early high of 141.18 and a 2-day high of 0.6182, respectively. The greenback may face support around 134.00 against the yen and 0.65 against the kiwi.

In contrast, the greenback advanced against the loonie, reaching an 8-day high of 1.3229. Next key resistance for the currency may be located around the 1.35 level.

The greenback held steady against the aussie, after rising to 0.6728 in the previous session. The pair was worth 0.6791 at yesterday's close.

U.S. new home sales for June will be published in the New York session.

At 2:00 pm ET, the Fed announces its decision on interest rate. The central bank is expected to raise the target range for the federal funds rate by 25 basis points to 5.25 percent to 5.50 percent.