The greenback traded in a narrow range on Tuesday before the kick off Fed’s meeting, meanwhile the euro slumped.

The dollar index that gauges the greenback versus its major pairs, dipped 0.1% at 103.340, just little below the six-week peak of 103.82 touched the previous week.

Traders seemed to be hesitant before the scheduled Fed’s policy meeting that shall run for two consecutive days, and will kick off on Wednesday.

The stance of the central bank in the US is quite projected to see a maintain in the interest rates.

Traders now believe there is a 50/50 likelihood that the Fed will lower interest rates in March. This is a significant departure from forecasts set in December, when the U.S. central bank projected rate reduction of around 150 basis points in 2024.

EUR/USD slipped by 0.1% at 1.0824, as figures indicated that the German economy shrank in the Q4, spiking the outlook that it could drive the plunge the of the whole eurozone economy.

GBP/USD dropped 0.3% at 1.2675, before the BOE’s policy meeting scheduled this week, with projections of keeping interest rate unchanged.

USD/JPY dipped 0.1% to 147.36, with the Yen inching up a bit following the release of Japan’s jobless figures that tumbled to 2.4% the earlier month.