TOKYO: The dollar held steady in Asia on Wednesday as investors await the end of a US Federal Reserve policy meeting, looking for clues about its plans for its stimulus programme.
The greenback bought 98.14 yen in Tokyo afternoon trade against 98.17 yen in New York Tuesday afternoon, while the euro was at $1.3737 and 134.81 yen, from $1.3744 and 134.93 yen.
The US central bank's Federal Open Market Committee (FOMC) is to wrap up a two-day meeting Wednesday, with markets widely expecting it to keep its $85 billion-a-month bond-buying scheme in place until the new year.
"The FOMC will almost certainly announce no change," National Australia Bank said in a note.
The dollar will likely move in a range between 97 and 99 yen for months to come until the market becomes more confident about when the Fed would size down its bond-buying programme, said a senior dealer at a major bank in Tokyo.
"The current consensus is March, but that can easily be pushed back, depending on what will happen to the US economy and its fiscal problems," Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo, told Dow Jones Newswires.
A compromise plan struck this month between Democrats and Republicans to avert a default only funds the government until mid-January and extends US borrowing authority until February.
On Wednesday markets were also watching for jobs data from payrolls firm ADP due later in the day to gauge the health of the US economy.
Weak figures would likely strengthen expectations for continued easing by the Fed and weaken the greenback.
Investors would also be watching a Bank of Japan policy meeting Thursday with analysts expecting it to keep its aggressive easing programme intact.
The dollar was mixed against other Asia-Pacific currencies.
It weakened to 61.49 Indian rupees from 61.70 rupees the previous day while rising to Sg$1.2397 from Sg$1.2385.
It also rose to Tw$29.43 from Tw$29.41, to 43.19 Philippine pesos from 43.14 pesos, and to 11,209 Indonesian rupiah from 11,100 rupiah.
The dollar was a shade higher at 1,060.78 South Korean won from 1,060.72 won and at 31.07 Thai baht from 31.06 baht.
The Australian dollar fell to 94.78 US cents from 95.07 cents, while the Chinese yuan edged up to 16.08 yen from 16.03 yen.
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