The US dollar weakened slightly in New York trading on Tuesday but remained near a one-month high as investors assessed the possibility of a Federal Reserve rate hike at this week's meeting. The dollar index, which measures the greenback against a basket of six major currencies, slipped 0.12 percent to 101.417, still close to the 101.80 level reached in late June. The dollar strengthened against the yen, trading at 163.86 yen from 163.78 yen on Monday, while weakening against the Canadian dollar to 1.4105 Canadian dollars from 1.4125 Canadian dollars. The euro firmed to 1.1387 dollars and the pound edged up to 1.3289 dollars. Analysts said investors are increasing dollar holdings and preserving liquidity ahead of the Fed's policy announcement on Wednesday. LSEG data showed markets are pricing in nearly a 40 percent chance of a quarter-point rate hike at this meeting, up from around 20 percent a week ago, and investors see an almost 95 percent probability of a rate increase by September.