Investing.com - The dollar was at one-week highs against the yen on Wednesday, supported by Tuesday’s stronger than forecast U.S. inflation data, as investors awaited the outcome of the Federal Reserve’s latest policy meeting.
USD/JPY edged up 0.11% to 102.26, from 102.13 late Tuesday.
The pair was likely to find support at 101.80, Tuesday’s low and resistance at 102.60.
The dollar strengthened broadly after the Labor Department said Tuesday that U.S. consumer prices rose 0.4% from a month earlier, bringing the annual rate of inflation to 2.1%. It was the fastest monthly increase in inflation in more than a year, beating forecasts of 0.2%.
The uptick in inflation indicated that the economic recovery is deepening and boosted expectations for a more hawkish stance on interest rates from the Fed.
Investors were looking ahead to the bank’s post-policy meeting press conference with Chair Janet Yellen later Wednesday, as they awaited fresh indications on the timing of possible interest rate increases.
The Fed was expected to cut its asset purchase program by another $10 billion, but is not expected to raise borrowing costs until mid-2015.
EUR/USD was little changed at 1.3544, holding above the four month trough of 1.3502 struck earlier this month.
Elsewhere Wednesday, the euro edged higher against the yen, with EUR/JPY easing up 0.10% to 138.50.