Dollar Gains Momentum Amid Fed Speculations and Turkish Turmoil

The dollar rebounded from lows as traders focused on the Federal Reserve's meeting for interest rate clues. The arrest of Turkey’s main opposition figure also influenced currency movements. The euro slid, while the yen held steady. Meanwhile, bitcoin rose slightly amid market fluctuations.

The dollar surged on Wednesday after retreating to multi-month lows, with traders keenly anticipating the Federal Reserve's meeting outcomes for insights on U.S. interest rates. Market dynamics shifted further when Turkish political events caused the lira to plummet by 12% to a record low.

The euro, conversely, took a 0.4% hit against the greenback, missing gains from recent days. This depreciation follows the dollar's 6% decline against the euro since January, attributed to concerns over the U.S. economic impact of Trump's trade policies.

Elsewhere, the Turkish lira dipped dramatically following the detention of Istanbul's mayor, a significant political adversary to President Erdogan, further exacerbating the country's economic turmoil.

(With inputs from agencies.)