The dollar steadied on Wednesday ahead of the U.S. Federal Reserve's policy decision, with investors on edge for hints of how much interest rates might fall this year, while they broadly expect the central bank to keep policy unchanged for now.

The dollar was edging higher ahead of the Federal Reserve's policy meeting later as the central bank is widely expected to pause interest-rate cuts. The Fed could defy strong labor market data and expectations for strong growth by sounding less cautious about the pace of future rate cuts,