Investing.com - The dollar fell to nearly one-month lows against the yen on Wednesday after the Bank of Japan reworked its monetary policy framework and as traders remained cautious ahead of the outcome of the Federal Reserve’s policy meeting.
The BoJ refrained from cutting interest rates further into negative territory or expanding its asset purchase program, instead switching to targeting interest rates as a way to reach its inflation target.
The yen gained ground following the policy shift amid skepticism over whether it will be enough to spur inflation.
USD/JPY was down 0.82% to 100.86, the lowest since August 26.
The yen was also higher against the euro, with EUR/JPY falling 0.9% to 112.37.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, slid 0.18% to 95.81.
The dollar remained on the defensive as traders turned their attention to the upcoming Fed monetary policy decision.
The U.S. central bank is expected to leave interest rates unchanged and could signal that it could raise interest rates by the years end.
The euro was steady against the dollar, with EUR/USD 1.1151.
The pound was slightly higher, with GBP/USD edging up 0.11% to 1.3002.