Dollar falls from 4-week high ahead of Fed's meeting

The US dollar fell against its peers on Tuesday, deepening losses for second straight day, on profit-taking from a 4-week high, ahead of the US Federal Reserve's meeting.

The dollar index fell 0.2% to 93.06 points, after opening at 93.24 points, and hit a low of 93.27 points.

The US dollar index fell less than 0.1% yesterday, on profit-taking from a 4-week high at 93.45 points.

Most global stock markets rebounded today after the People's Bank of China has injected huge sums of money, in attempts to ease global markets' concerns about the world's second largest economy.

The Fed will convene later today to decide on monetary policy and provide clarity over the future of its decision in light of the recent economic data, amid expectations to start reducing its bond-buying before the end of this year, which is an essential step before an interest rate hike.

The markets are anticipating the Fed’s next step, especially after the release of mixed economic data, while the central bank hinted to start reducing its bond-buying before the end of this year, which is an essential step before an interest rate hike.