Dollar Consolidates Below 2–1/2 Week Highs Before Fed Decision

Dollar Consolidates Below 2–1/2 Week Highs Before Fed Decision
A picture illustration of the U.S. dollar, Swiss Franc, British pound, and Euro banknotes, taken in Warsaw, Poland, on Jan. 26, 2011. Kacper Pempel/Reuters
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LONDON—The U.S. dollar held below its 2-1/2 week high on Wednesday as risk sentiment stabilized before a Federal Reserve meeting where policymakers are widely expected to signal readiness to start raising interest rates from March.

Markets have been on a rollercoaster ride this week as the combination of a hawkish Fed and slowing growth have unnerved investors, prompting them to dump high-flying technology shares and seek refuge in safe-haven assets such as the dollar.