GLOBAL MARKETS-Dollar near five-month high ahead of Fed policy decision

The dollar edged towards its highest level this year against a basket of peers and U.S. share futures dipped on Wednesday ahead of a Federal Reserve policy decision, though trading was thin with many European and Asian markets closed. The latest move higher in the dollar came after hotter-than-expected first-quarter U.S. employment cost growth on Tuesday, which sent Treasury yields higher and caused markets to further pare bets on Fed rate cuts this year. The Fed is almost certain to hold its benchmark overnight interest rate steady later in the day, but a policy statement issued at 1400 EDT (1800 GMT) and Chair Jerome Powell's press conference half an hour later should provide insight into how deeply – if at all – a stretch of three lost months in the inflation battle has affected the likelihood that borrowing costs will fall any time soon.