The US dollar is trading strong and steady against its other peers ahead of the Fed meeting scheduled for later today. At the time of writing, the US dollar index DXY is trading at around 98.29.

The forex market is expected to continue trading in narrow ranges until the Fed announces its decision. Markets have already priced in a 0.25% rate cut, but traders will be hesitant to enter new positions until they receive official confirmation after the meeting.

On Tuesday, the Fed injected over $53 billion into the financial system to boost lending, for the first time in over a decade. Corporate tax payments and Treasury settlements had caused a temporary shortage of cash in US money markets.