Abu dhabi: The dollar held onto recent gains on Wednesday, trading near multi-week highs against several major currencies as markets awaited a US Federal Reserve decision that traders expect to deliver the first interest rate hike in a potential series of increases in borrowing costs.

According to Emirates News Agency, the dollar rose alongside bond yields overnight, posting its strongest gains against the yen and New Zealand dollar. The kiwi fell to a two-month low of $0.5749 in Asian morning trade, while the yen weakened to a one-week low of 155.43 per dollar.

The euro traded at $1.1535, near Monday's one-month low of $1.1523, while sterling stood at $1.3470, not far above its six-week low of $1.3464 reached on Monday. The Australian dollar was steady at $0.7126.