Investing.com - The dollar was little changed against the other major currencies on Wednesday, ahead of the much awaited Federal Reserve policy decision amid widespread expectations for a small reduction to the bank’s stimulus program.
During European morning trade, the dollar was steady against the yen, with USD/JPY dipping 0.02% to 99.12.
Investors were focused on the outcome of the Fed’s two-day policy meeting, due to conclude later Wednesday. The central bank was expected to announce plans to start reducing its USD85 billion-a-month asset purchase program.
The dollar remained under pressure after a recent series of soft economic data, including the latest U.S. jobs report, saw investors reassess expectations over how much the Fed will cut its stimulus program.
Elsewhere, the euro inched lower against the dollar, with EUR/USD edging down 0.04% to 1.3352.
The single currency continued to be underpinned after data released on Tuesday showed that the closely watched ZEW index of German economic sentiment rose to the highest level since April 2010 in September, on the back of the improved economic outlook for the euro zone.
The pound remained supported near eight-month highs against the dollar, with GBP/USD inching up 0.09% to 1.5919.
The dollar was almost unchanged against the Swiss franc, with USD/CHF inching up 0.03% to 0.9262.
Elsewhere, the greenback was little changed against its Australian, New Zealand and Canadian counterparts, with AUD/USD edging up 0.09% to 0.9363, NZD/USD inching up 0.01% to 0.8240 and USD/CAD dipping 0.03% to trade at 1.0292.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged down 0.02% to 81.29.
The U.S. was to release data on building permits and housing starts later Wednesday, ahead of the Fed policy announcement.
During European morning trade, the dollar was steady against the yen, with USD/JPY dipping 0.02% to 99.12.
Investors were focused on the outcome of the Fed’s two-day policy meeting, due to conclude later Wednesday. The central bank was expected to announce plans to start reducing its USD85 billion-a-month asset purchase program.
The dollar remained under pressure after a recent series of soft economic data, including the latest U.S. jobs report, saw investors reassess expectations over how much the Fed will cut its stimulus program.
Elsewhere, the euro inched lower against the dollar, with EUR/USD edging down 0.04% to 1.3352.
The single currency continued to be underpinned after data released on Tuesday showed that the closely watched ZEW index of German economic sentiment rose to the highest level since April 2010 in September, on the back of the improved economic outlook for the euro zone.
The pound remained supported near eight-month highs against the dollar, with GBP/USD inching up 0.09% to 1.5919.
The dollar was almost unchanged against the Swiss franc, with USD/CHF inching up 0.03% to 0.9262.
Elsewhere, the greenback was little changed against its Australian, New Zealand and Canadian counterparts, with AUD/USD edging up 0.09% to 0.9363, NZD/USD inching up 0.01% to 0.8240 and USD/CAD dipping 0.03% to trade at 1.0292.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged down 0.02% to 81.29.
The U.S. was to release data on building permits and housing starts later Wednesday, ahead of the Fed policy announcement.