Investing.com - The dollar slipped lower against the other major currencies on Tuesday, as investors awaited the release of U.S. economic reports later in the day and remained cautious ahead of the Federal Reserve’s policy statement on Wednesday.
USD/JPY declined 0.32% to 110.83.
Sentiment on the greenback was vulnerable as traders awaited the Fed’s upcoming policy meeting, due to conclude on Wednesday for hints on the pace and timing of future rate hikes.
Market participants were also eyeing the release of U.S. reports on durable goods orders and consumer confidence, due later Tuesday for further indications on the strength of the economy.
The Bank of Japan is to wrap up its two-day policy meeting on Thursday and in recent daysexpectations for more easing have mounted.
The yen fell 2.1% against the dollar on Friday after Bloomberg reported that the BoJ could expand the negative interest rate policy it put in place in January at the conclusion of its rate review.
EUR/USD edged up 0.14% to trade at 1.1284.
The dollar was lower against the pound, with GBP/USD up 0.53% at a 10-week high of 1.4559 and was steady against the Swiss franc, with USD/CHF at 0.9745.
The pound strengthened as investors seemed to forget their concerns over a British exit from the European Union, or Brexit.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.32% at 0.7739 and with NZD/USD climbing 0.50% to 0.6888.
Elsewhere, USD/CAD fell 0.26% to 1.2644, hovering close to last week’s nine-month trough of 1.2589.
The commodity currencies were boosted as oil prices bounced back on Tuesday thanks to a weaker U.S. dollar, but gains were expected to remain limited as Saudi Arabia, Iran and Koweit all announced output increases, adding to concerns over a global supply glut.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.22% at 94.54, the lowest since April 21.