The dollar was modestly weaker against the euro on Tuesday as investors awaited the conclusion of the Federal Reserve's policy meeting the following day, the first chaired by Kevin Warsh, with markets watching for any signals that the ​central bank could raise interest rates later this year.

Markets widely expect new Federal Reserve Chair Kevin Warsh to leave interest rates unchanged at the conclusion of his debut FOMC meeting on Wednesday. If he does, the bigger story may not be the Fed's decision.

The Federal Reserve is set to announce its latest decision on interest rates tomorrow. This will mark the first potential adjustment since Kevin Warsh took over as Fed chair last month, replacing Jerome Powell.

The Federal Reserve is set to announce its latest decision on interest rates on Wednesday as the central bank weathers the highest inflation in three years. The announcement will mark the first possible adjustment of the benchmark interest rate since Trump nominee Kevin Warsh began his four-year term as Fed chair last month.

Warsh faces first big test as Fed chair with markets watching closely