The dollar rebounded Expected the Fed will be added on Wednesday

The dollar regained most of its losses recorded in early trading on Monday, as markets expect the Federal Reserve to raise interest rates on Wednesday, despite fears of a continued suppression of the dollar.

As the Fed concludes its two-day December policy meeting on Wednesday, investors will be eyeing Fed officials' concerns about low inflation and the signs that this will lower the likelihood of a rate hike next year.

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The employment report released on Friday showed moderate wage growth in the United States and increased concerns that inflation will continue to moderate, making it more and more difficult for the Federal Reserve to raise interest rates further.

The market was slightly cautious after last week's employment data was released and this week's Fed policy meeting was held, especially if Yellen disappoints with inflation figures and how this will affect the prospect of a rate hike next year, "said TDI FX Strategy Unit North American director Mark McCormick said.