Dollar near one-month high before Fed meeting

The dollar traded near a one-month high against the euro before a Federal Reserve meeting today at which policy makers may leave interest rates on hold and signal prices are increasing too quickly.

The US currency was also near the strongest in a month against the yen. Crude oil rose for a second day as a tropical storm threatened US output.

"With oil prices being where they are, I don't see how the Fed can soften its rhetoric on inflation," said Neil Mellor, a currency strategist in London at Bank of New York Mellon Corp. "The dollar is regaining some footing. Risks are now skewed towards the dollar strength versus the euro."