Investing.com - The dollar was almost unchanged against the yen on Wednesday as investors awaited a Federal Reserve policy statement later in the day, while the euro was slightly lower.
USD/JPY was steady at 117.88, holding below last week’s highs of 118.85.
Investors were looking ahead to the Fed’s rate statement for further indications on when interest rates may start to rise. The U.S. central bank was expected to stick to its pledge to be patient on tightening monetary policy.
The Fed is currency expected to start hiking borrowing costs around the middle of this year. However, investors have remained cautious amid concerns over impact of falling oil prices on the inflation outlook and the uneven economic recovery.
The dollar weakened in the previous session after data showing orders for durable goods unexpectedly dropped 3.4% in December, indicating that the slowdown in global growth is weighing on the U.S. manufacturing sector.
Still, another report showed that U.S. consumer confidence jumped to the highest level in more than seven years this month, boosted by an improving labor market and lower gasoline prices.
The U.S. was to release what would be closely watched preliminary data on fourth quarter economic growth on Friday.
The euro was lower, with EUR/USD down 0.28% to 1.1346, off Tuesday’s highs of 1.1422. EUR/JPY was down 0.61% to 133.29.
The single currency remained under pressure after Greece’s new government moved to roll back deeply unpopular austerity policies underpinning the county’s €240 billion bailout, fuelling fears over a clash with its international creditors.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.41% to 94.65, off last Friday’s more than 11-year highs of 95.77.