Dollar cements gains before Fed decision

London

INVESTORS pressed the pause button on a two-week rally in the dollar on Wednesday before the outcome of a US Federal Reserve meeting at which policymakers are widely expected to raise interest rates for the third time this year.

Though traders expect the Fed to raise interest rates more next year than bond markets are currently anticipating, uncertainty over the US tax bill and the Fed's outlook is keeping investors sidelined for the moment. Some forecasters nevertheless see a bullish outlook for the dollar at least in the first half of next year.