TOKYO: The dollar held steady in Asia on Wednesday with investors sticking to the sidelines as they await the conclusion of the US Federal Reserve's policy meeting.
The US unit was at 95.40 yen in Tokyo, against 95.37 yen in New York late Tuesday.
The dollar-yen rate was likely to trade in a narrow range before the Fed wraps up its two-day meeting and chairman Bernanke speaks soon after, said Junichi Ishikawa, market analyst at IG Securities in Tokyo.
All eyes are on whether the US central bank gives any indication of when it will begin to reel in its $85-billion-a-month bond buying programme known as quantitative easing.
The Fed needs to "grasp the nettle to map out a path toward tapering" the programme, National Australia Bank said.
Markets were eyeing the dollar to test 96 yen during Wednesday's session, Ishikawa of IG Securities said, as the Nikkei 225 stock index rose 1.25 percent by the break with a weaker yen helping boost the Tokyo market.
"But unless the Nikkei rises even higher from current levels, the pair will likely be rangebound in the 95-yen level for the time being," he told Dow Jones Newswires.
Currency rates hardly moved after Japan released data showing its trade deficit for May expanded a smaller-than-expected 9.5 percent from a year earlier to $10.4 billion. The figures showed exports jumped 10.1 percent from a year earlier, offering up some good news for Japan's economy.
The euro fetched $1.3394 compared with $1.3396 while it changed hands at 127.87 yen against 127.76 yen.
The euro held steady after the ZEW economic institute said German investor sentiment rose slightly in June on firming hopes for a gradual recovery in Europe's biggest economy.
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