In spite of a little decline on Tuesday, the U.S. dollar was still close to a two-week high as investors are on edge waiting the Federal Reserve's widely anticipated interest rate increase during the day.

Figures on Tuesday showing that U.S. consumer confidence increased to the highest level in two years in July as inflation declined and the economy remained resilient despite higher interest rates gave the dollar a boost.

Later in the session, when the U.S. Federal Reserve's two-day policy-setting meeting comes to an end, it is anticipated that it would approve an increase of one-quarter point, making it the 11th increase in the previous 12 policy meetings.

The dollar index that gauges the greenback versus its major pairs dropped 0.1% at 100.960, post reaching 101.65 overnight, the highest point since July 11.

EUR/USD added rose 0.1% to 1.1067, slightly above the low of the earlier session at 1.1036, which was last reached on July 12.

GBP/USD steadied at 1.2898.

USD/JPY dipped 0.2% to 140.68 before BOE’S meeting.