The US dollar steadied near a four-week high while the yen weakened to a fresh 40-year low in Tuesday trading. The dollar index edged up 0.06 percent to 101.58, its highest since June 25. The yen depreciated to 163.915 per dollar. Markets are pricing in nearly a 40 percent chance that the Federal Reserve will raise interest rates by 0.25 percentage points at its meeting this Wednesday, up from about 20 percent a week ago, and see a nearly 95 percent probability of a rate hike by September. The Bank of Japan is expected to keep the door open for a rate increase to support the yen, while Japan's finance minister reiterated readiness to respond appropriately to currency moves.