Investing.com - The dollar slid to one week lows against a basket of other major currencies on Wednesday as market participants turned all their attention to a keenly anticipated policy statement from the Federal Reserve later in the day.
EUR/USD rose 0.20% to 1.2762, just below Tuesday’s one week highs of 1.2764.
The Fed was widely expected to announce the conclusion of its asset purchasing stimulus program, known as quantitative easing, at the conclusion of its two day policy meeting later Wednesday.
However, the U.S. central bank was also expected to reassure markets that interest rates will remain on hold for some time to come amid concerns that slowing growth in Europe and China may act as a drag on the U.S. economy.
The dollar weakened against the other major currencies on Tuesday after a report showed that U.S. orders for long lasting manufactured goods were unexpectedly lower for the second successive month in September.
The greenback subsequently pared back losses after another report showed that U.S. consumer confidence jumped to the highest level in seven years this month.
USD/JPY eased 0.08% to 108.06, holding above Tuesday’s lows of 107.68.
The yen showed little reaction after data earlier Wednesday showed that Japanese industrial production rose 2.7% in September from a month earlier, beating forecasts.
Elsewhere, the dollar edged lower against the pound and the Swiss franc, with GBP/USD up 0.11% at 1.6148 and USD/CHF shedding 0.23% to trade at 0.9450.
The Australian dollar hit one-month highs, with AUD/USD gaining 0.44% to hit 0.8896. NZD/USD was up 0.59% to 0.7964, while USD/CAD slipped 0.23% to 1.1142.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, was down 0.24% to one week lows of 85.26.