TOKYO: The dollar was stuck in a tight range on Wednesday as investors waited for a policy announcement by the US Federal Reserve.
The greenback bought 121.35 yen in Tokyo trade, compared with 121.34 yen in New York late Tuesday.
The euro held firm at $1.0595 and 128.57 yen from $1.0590 and 128.51 yen in US trade after German data showed investor confidence rose to a 13-month high in March.
The US central bank's decision-making Federal Open Market Committee (FOMC) is to wrap up a two-day meeting on Wednesday, with Fed chair Janet Yellen set to hold a post-meeting press conference.
Investors were looking out for clues about what could be the first interest rate increase in nearly nine years.
Many Fed watchers anticipated the FOMC will delete its reference to being "patient" -- used in the December and January statements -- about raising near-zero rates in its post-meeting statement Wednesday.
Expectations have been high for an increase as early as June after a strong jobs report at the start of the month, but they have been tempered by the latest figures, as well as data Friday showing falling producer prices.
"The FOMC meeting is now under way, and whether the accompanying market backdrop is a direct reflection of nervousness over the outcome, or rather may actually feed into it, is hard to say," National Australia Bank said in a note.
Yellen has said that once that "patient" language is removed, a rate hike could come within two FOMC meetings, but that the decision to lift would be dependent on economic data.
The dollar was mixed against other Asia-Pacific currencies.
It rose to 44.72 Philippine pesos from 44.41 pesos on Tuesday, and to Sg$1.3900 from Sg$1.3890.
The dollar eased to Tw$31.54 from Tw$31.61, to 1,127.82 South Korean won from 1,129.56 won, and to 13,181.90 Indonesian rupiah from 13,204.00 rupiah.
The greenback inched down to 32.90 Thai baht from 32.91 baht while being unchanged at 62.68 Indian rupees.
The Australian dollar fell to 76.13 US cents from 76.38 cents, while the Chinese yuan edged up to 19.45 yen from 19.40 yen.
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