- The dollar moved higher against the yen on Wednesday as investors turned their attention to the Federal Reserve’s policy statement later in the session, amid expectations for a further reduction in stimulus.

USD/JPY hit 103.45, the highest since Friday, and was last up 0.40% to 103.34.

The pair was likely to find support at 102.47, Tuesday’s low and resistance at 104.00.

Demand for the dollar was underpinned by expectations that the Fed will 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.

Market sentiment was boosted after Turkey’s central bank announced aggressive rate hikes overnight, following an emergency policy meeting.

The move eased concerns over emerging markets, following a broad based selloff last Friday, triggered by worries over the impact of reduction in Fed stimulus and concerns over a possible slowdown in China.

The dollar was steady against the euro, with EUR/USD dipping 0.04% to 1.3666.

Elsewhere, the euro was higher against the yen, with EUR/JPY rising 0.30% to 141.10.

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