The dollar traded in a narrow range against major currencies as investors monitored developments in the Middle East and this week's Federal Reserve meeting. The dollar index edged up 0.02 percent to 101.487, while the dollar weakened 0.05 percent against the euro to 1.137 and slipped 0.07 percent to 163.72 yen. Two Middle Eastern officials said mediators have made progress in pushing the United States and Iran back to the negotiating table, after both sides halted attacks for a third consecutive day, sending Brent crude below 90 dollars a barrel and West Texas Intermediate below 84 dollars. As for the Fed meeting, where Kevin Warsh will chair for the second time, investors are pricing in a 66.3 percent chance that the Fed will hold rates at 3.50 to 3.75 percent at the July 28-29 meeting, and a 79.4 percent probability of at least a quarter-point hike to 3.75 to 4.00 percent at the September meeting.