The euro stabilized around $1.155, near its weakest level in a month, as the US dollar held firm ahead of the Federal Reserve’s decision. US policymakers are widely expected to raise interest rates by 25 basis points, the first increase in three years, with markets focused on guidance about further tightening. Investors have also increased bets on European Central Bank hikes as inflation concerns return. Markets price the ECB deposit rate at about 2.9% by December, compared with 2.5% currently, and 3.4% by November 2027, fully reflecting a third hike and implying about a 50% chance of a fourth. The ECB raised rates last week for the second time this year to address an energy-driven inflation increase and warned that price pressures could remain persistent.