Six weeks after the Federal Reserve raised interest rates, thedollar is up more than 1 percent as traders wait for signs of thecentral bank's next move.

The greenback swung between gains and losses Wednesday againstmost of its major peers as traders weighed whether the marketturmoil that has greeted the start of 2016 will prompt U.S. policymakers to signal a slower pace of interest-rate increases.

Traders are jittery before central-bank meetings this week inthe U.S., Japan, and New Zealand amid speculation that policymakers will be forced to address volatile markets. The greenbackhas rallied for the last two years on speculation that the Fed willboost borrowing costs in contrast to easing by its globalpeers.

“The market is cautious ahead of the Fed meeting,” saidGeorgette Boele, a currency strategist at ABN Amro Bank NV inAmsterdam. “The talk is that the Fed will sound dovish. We thinkthat they will not make a reference to the March meeting for thenext hike, but direct expectations more towards June.”

The bank forecasts the dollar will strengthen to parity with theeuro and 130 yen by the end of the year.

The Bloomberg Dollar Spot Index was little changed at 1,248.00as of 11:48 a.m. in New York. The greenback was at $1.0873 per euroand 118.87 yen.

Hedge funds and other money managers increased net bullish betson the dollar for the first time in four weeks last week, accordingto data from the Commodity Futures Trading Commission. Bullishpositions on the greenback against eight major currenciesoutweighed bearish bets by 318,645 in the period to Jan. 19, upfrom 303,113 the week earlier, the data showed.

Before the current turmoil, Fed officials indicated they expected four interest-rate increasesin 2016. The probability of an increase this week has stayedlow after the December liftoff, and chances the Federal Open MarketCommittee (FOMC) will raise borrowing costs in March have fallen to27 percent from even odds at the start of the year.

Strategists at BNP Paribas SA recommended buying the dollaragainst the euro, Swiss franc, yen, and Australian dollar goinginto the meeting.

“We expect today's FOMC statement to acknowledge recent marketstress and mixed data, but to emphasize the favorable medium-termoutlook and healthy labor market in an effort to maintain leeway tohike again in March,” strategists including Steven Saywell, thebank's global head of foreign exchange strategy, said in a note. “Aresult in line with our expectations should be U.S.dollar-supportive.”

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