1st LD Writethru: U.S. dollar rises as Fed meeting approaches

The U.S. dollar climbed against most major currencies on Tuesday as investors were awaiting the closely-watched Federal Reserve policy meeting which starts Wednesday.

Although recent mixed U.S. data and turbulent global markets have been lowering investors' expectation for the Fed to raise interest rates this month, there is still some optimism in the market as the meeting looms.

The dollar index, which measures the greenback against six major peers, was up 0.38 percent at 95.606 in late trading.

On the economic front, The Commerce Department announced Tuesday that advance estimates of U.S. retail and food services sales for August increased 0.2 percent from the previous month to 447.7 billion U.S. dollars, slightly below market consensus of a 0.3-percent gain.

Meanwhile, the Fed said that U.S. industrial production decreased 0.4 percent in August, exceeding market expectations of a 0.2-percent decline.

In late New York trading, the euro fell to 1.1278 dollars from 1.1315 dollars in the previous session, and the British pound dropped to 1.5332 dollars from 1.5432 U.S. dollars in the previous session. The Australian dollar decreased to 0.7120 dollar from 0.7139 dollar.

The U.S. dollar bought 120.46 Japanese yen, higher than 120.07 yen of the previous session. The U.S. dollar hiked to 0.9742 Swiss franc from 0.9683 Swiss franc, and it dived to 1.3246 Canadian dollars from 1.3257 Canadian dollars. Enditem