Dollar Edges Higher as Traders Brace for Fed, ECB and BoJ Meetings; Euro Slips to $1.1144

The dollar firmed against the euro, yen and pound on Tuesday as traders positioned ahead of a barrage of central bank meetings expected to shape the interest rate outlook. The Federal Reserve announces its decision Wednesday, the ECB on Thursday and the Bank of Japan on Friday, with all three expected to hold rates steady and focus falling on policy signals. The U.S. currency rose 0.16% to 157.73 yen, the euro slid 0.26% to $1.1144 and the pound dipped 0.18% to $1.3319. ING analyst Francesco Pesole said stabilizing AI-related sentiment had let markets reconnect with a supportive backdrop of a hawkish Fed and high energy prices. The euro extended losses after the ECB's Bank Lending Survey showed rate hikes taking effect, potentially easing pressure for further tightening. Sterling was held in check ahead of finance minister John Healey's budget on Wednesday. Japan's service-sector inflation gauge rose 3.7% in September, keeping the BoJ on track for further hikes.