The giant currency US dollar maintained its strengthening momentum as the market's focus continued to focus on the FOMC policy meeting early Thursday morning Malaysian time.
Higher US treasury yields helped support the greenback, with 2-year yields jumping to a 15-year high ahead of the Federal Reserve (Fed) announcement.
However, a cautious move in the market limited the trading of the US dollar as investors considered the possibility that the Fed would implement an increase greater than 75 basis points due to still high inflation.
Apart from the Fed, several policy decisions from other major central banks will also be known on Thursday, namely the Bank of Japan (BOJ), England (BOE) and the Swiss National Bank (SNB).
Against a basket of major currencies, the dollar index, which measures the strength of the greenback, traded firm at 110.26 in the Asian session.
Most of the other major currencies continued to exhibit volatile movements, with overall prices seen moving flat as investors remained cautious ahead of the key day.
The euro moved not far from around the 1,000 parity price against the US dollar, while the pound continued to weaken at a 37-year low.
The dollar loonie slipped to its latest 2-year low after Canada's inflation report showed a 0.3% month-on-month drop in August, with the annual basis also down to 5.7% from 6.0% previously.
