Palladium rises 1% as dollar backs off 1-1/5 year high

Palladium prices rose nearly one percent in American trade as the dollar index backed off June 2017 highs for the fourth straight session, following earlier data from the US and ahead of the Federal Reserve's policy decisions. 

As of 02:55 GMT, palladium rose 0.78% to $797.00 an ounce, while the dollar index slid 0.40% to 96.71. 

Earlier US data showed the current trade deficit rose to $125 billion as expected from $101 billion in the second quarter. 

The Federal Open Market Committee is wrapping up its two-day policy meeting today, with analysts expected the fourth rate hike of the year to below 2.25%. 

The Fed will also release three-year forecasts for growth, inflation, unemployment, and interest rates.