Investing.com - The dollar trimmed gains against the yen on Wednesday and was little changed against the euro ahead of the Federal Reserve’s policy statement due out later in the trading day.
USD/JPY was up just 0.01% to 102.94 after rising to highs of 103.45 earlier.
The U.S. central bank was expected to roll back its asset purchase program by another $10 billion, to $65 billion per month. The central bank announced the first cut to its stimulus program in December.
The dollar rose to session highs against the yen earlier as market sentiment firmed up after Turkey’s central bank announced aggressive rate hikes following an emergency policy meeting overnight, in a bid to shore up the lira.
The move eased concerns over emerging markets, following a broad based selloff last Friday, triggered by worries over the impact of cuts in Fed stimulus and concerns over a possible slowdown in China.
Elsewhere, EUR/USD inched up 0.05% to 1.3678, while GBP/USD edged up 0.03% to 1.6585. USD/CHF was unchanged at 0.8973.
The Australian dollar pulled back from session highs against the U.S. dollar, with AUD/USD dipping 0.03% to 0.8774, after rising as high as 0.8826 earlier.
NZD/USD was up 0.34% to 0.8285. The kiwi looked likely to remain supported ahead of Thursday’s reserve bank policy meeting, with markets split on whether the central bank will raise rates at this meeting or the next, as inflation remains above forecasts.
The Canadian dollar was trading at four-and-a-half-year lows against the U.S. dollar, with USD/CAD edging up 0.07% to 1.1160. The Canadian dollar remained under pressure amid expectations that rates will remain on hold for some time.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.01% to 80.65.