U.S. dollar falls ahead of Fed decision

The U.S. dollar slipped against major currencies on Wednesday. Traders are concerned about the U.S. Federal Reserve's upcoming interest rate decision and it affects the exchange rate. The Fed is about to take measures that will give hints to future policy.

According to investors’ estimates, the Fed is likely to raise its benchmark interest rate by 75 basis points. Estimates about the Fed steps at the December meeting are different, with futures markets split on the odds of a 75- or 50-bps increase. According to Reuters, recent remarks from Fed officials on a potential slowdown in the pace of tightening influenced it. 

Chris Weston, head of research at Pepperstone, highlighted in a client note that the Fed believed their inability to tackle entrenched price pressures was a greater danger than a potential U.S. recession.