Dollar firm as markets brace for another big Fed rate hike

The dollar index, which measures the greenback against six counterparts, was steady at 109.69. Sweden’s central bank set the tone for a packed week of central bank meetings. The Fed begins its two-day rate-setting meeting later on Tuesday. Markets have fully priced another 75 basis point increase, with around a 15% chance of a super-sized full percentage point increase. The two-year U.S. Treasury yield, which is extremely sensitive to policy expectations, rose as high as 3.973% in early London trade, its highest since November 2007. The Bank of England will decide policy on Thursday, and the Bank of Japan is widely expected to keep its ultra-easy stimulus settings unchanged. The yen has taken a kicking due to . . .