The dollar was underpinned Tuesday by a widely expected hike in U.S. target rate.
The dollar index was up 0.01% at 97.17 at 02:45 ET. FOMC seen raising rates Wednesday for second time this year.
The market odds of a 25-basis-point June rate hike to 1.0-1.25% currently stand at 90%.
The FOMC is expected to release updated economic projections and members’ views on the path of future rate hikes.
Expectations of three hikes this year are being questioned as inflation and wage growth remain weak.
Investors also looking for details on Fed’s plans to reduce its balance sheet in its statement and/or Fed Chair Janet Yellen’s news conference.
The sterling steadied below $1.27 as political uncertainty persisted after the indecisive outcome of the U.K. general election.
The euro was on the back foot at below $1.12 after gains on Monday as election results in France and Italy eased political concerns.
The dollar firmed to above the 110 mark against the yen.
The loonie rose against the dollar as expectations of a Canadian rate hike strengthened.
The Aussie was also firm after NAB’s May business confidence survey.