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Dollar eases ahead of Fed policy meeting
Trading in the currency markets in Asia on Wednesday was lackluster as investors are being cautious ahead of the Federal Reserve’s two-day meeting starting later in the day. U.S. economic data published on Tuesday did little to either back, or dampen expectations of a rate hike increase.
The dollar gave back some gains today, down about 2 percent against the yen.
USD/JPY was soggy and slid from 120.47 to 120.15. However the pair remains above the key psychological level of 120 yen after rising above it yesterday in reaction to the U.S. retail sales figures which showed a strong revision to July’s numbers.
The euro was buying 135.73 yen, nearly flat from U.S. levels and above the previous session’s low of 135.00. The euro also bought $1.129, up 0.2 percent and moving back toward Monday’s three-week high of $1.1373.
The dollar index, which tracks the greenback against a basket of six major rivals, was down about 0.2 percent at 95.443, well above a three-week low of 94.913 plumbed on Monday.
The Australian dollar was up against its U.S. counterpart and traded around $0.7130, close to a two-week peak of $0.7166 touched on Tuesday. The Aussie has made some recovery after falling below 69 cents earlier this month for the first time since 2010.
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