Investing.com

Investing.com - The dollar pushed higher against the yen and the euro on Tuesday, but gains were held in check amid concerns over the ongoing conflict in Iraq and ahead of the Federal Reserve’s policy meeting this week.



USD/JPY edged up 0.11% to 101.94 from 101.82 late Monday.



The pair was likely to find support at 101.59, the low of June 12 and resistance at 102.40.



Concerns over the ongoing Sunni insurgency in Iraq continued to weigh on market sentiment, amid fears over the impact of higher oil prices on global economic growth.



Investors were also cautious ahead of the outcome of the upcoming Fed policy meeting on Wednesday, as they looked for fresh indications on the timing of possible interest rate increases.



The International Monetary Fund cut its forecast for U.S. economic growth this year on Monday, saying that the unusually harsh winter, along with the “still-struggling housing market” would act as a drag on growth.



The IMF said it now expects the U.S. economy to expand 2% in 2014, down from its forecast of 2.8% in April.



However, U.S. data released on Monday indicated that the economy is continuing to improve.



Manufacturing activity in New York state expanded more quickly than forecast in June, while a separate report showed that industrial production rose more-than-expected in May.



The euro slipped lower against the dollar, with EUR/USD dipping 0.07% to 1.3563, not far from the four month trough of 1.3502 struck earlier this month after the European Central Bank eased monetary policy.



Elsewhere, the euro was little changed against the stronger yen, with EUR/JPY at 138.25, holding above the four month low of 137.71 set late last week.





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