- The dollar was steady against the yen on Tuesday, firming up after last week’s 1.8% decline, as investors began to turn their focus to Wednesday’s policy statement by the Federal Reserve.

USD/JPY edged up 0.05% to 102.60, recovering from the seven-week low of 101.76 reached on Monday.

The pair is likely to find support at 102.00 and resistance at 103.30.

Demand for the dollar was underpinned by expectations that the Fed will roll back its asset purchase program by another $10 billion, to $75 billion per month. The central bank announced the first cut to its stimulus program in December.

Concerns over the impact of the Fed scaling back its stimulus program, along with fears over a possible slowdown in China fuelled a broad based selloff in emerging currencies in recent sessions.

Sentiment on emerging market currencies remained fragile ahead of an emergency meeting of Turkey’s central bank later Tuesday. Turkey’s lira spiraled to new lows against the dollar on Monday, sparking widespread risk aversion.

The euro also edged higher against the yen, with EUR/JPY rising 0.15% to 140.43.

Elsewhere, the euro was little changed against the dollar, with EUR/USD inching up 0.01% to 1.3675 from 1.3671 on Monday.

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