TOKYO: The dollar held steady in Asia on Wednesday as investors await the Federal Reserve's decision on whether to start reducing its massive stimulus and by how much.
In early trade the greenback edged up to 99.23 yen in Tokyo from 99.14 yen in New York Tuesday.
The euro was at $1.3348 and 132.53 yen against $1.3356 and 132.38 yen, helped by strong German economic data.
The dollar could stay in a 98.80-99.80 yen range in Asia before the outcome of the Fed's two-day policy meeting later in the day, said Osao Iizuka, head of foreign exchange trading at Sumitomo Mitsui Trust Bank.
"Because of uncertainty (about) the result, traders are opting to square their positions instead of taking fresh bets," Iizuka told Dow Jones Newswires.
The Fed is widely expected to scale back its $85 billion per-month bond-buying programme.
The market has likely factored in a $5-$15 billion reduction in the scheme.
The initial dollar-yen reaction to the Fed's decision may hinge on how the US stock market reacts, Iizuka said.
US stocks Tuesday closed higher on greater investor confidence that the US economy could withstand an expected reduction of Fed bond purchases.
The Dow closed up 0.23 percent Tuesday, while Tokyo's Nikkei 225 index gained 1.84 percent by late morning Wednesday.
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