Dollar Holds Fast Ahead of Fed Decision, Sterling Falls on Cool UK Inflation

Dollar Holds Fast Ahead of Fed Decision, Sterling Falls on Cool UK Inflation
U.S. dollar banknotes are displayed in this illustration taken, on Feb. 14, 2022. Dado Ruvic/Illustration/Reuters
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LONDON—The dollar remained firm on Wednesday ahead of a much-anticipated rate decision by the Federal Reserve later in the day, while sterling slid on increased bets the Bank of England (BoE) will pause its historic run of interest rate hikes.

The U.S. dollar index, which measures the currency against a basket of rivals, stood firm at 105.10 with traders awaiting the Fed’s rate decision.