Investing.com - The dollar slipped lower against the yen on Wednesday and remained steady against the euro ahead of the Federal Reserve’s policy statement due out later in the trading day.
USD/JPY slipped 0.18% to 102.74 after rising to session highs of 103.45 earlier.
The U.S. central bank was expected to roll back its asset purchase program by another $10 billion, to $65 billion per month. The central bank announced the first cut to its stimulus program in December.
The dollar rose to session highs against the yen earlier after Turkey’s central bank announced aggressive rate hikes overnight, in a bit to stave off inflation and shore up the lira, which has fallen sharply in recent weeks.
The move eased concerns over emerging markets, following a broad based selloff last Friday, triggered by worries over the impact of cuts in Fed stimulus and concerns over a possible slowdown in China.
The lira rallied almost 4% against the dollar following the announcement, before retracing most of those gains to trade up 0.98%.
Elsewhere, EUR/USD dipped 0.04% to 1.3665, while GBP/USD slid 0.15% to 1.6554. USD/CHF inched up 0.02%.
The Australian dollar pulled back from session highs against the U.S. dollar, with AUD/USD losing 0.16% to 0.8763, after rising as high as 0.8826 earlier.
NZD/USD was up 0.30% to 0.8282. Demand for the kiwi continued to remain supported ahead of Thursday’s reserve bank policy meeting, with markets split on whether the central bank will raise rates at this meeting or in March.
The Canadian dollar was trading close to four-and-a-half-year lows against the U.S. dollar, with USD/CAD edging down 0.10% to 1.1140. The Canadian dollar remained under pressure amid expectations that rates will remain on hold for some time.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.02% to 80.66.
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