TOKYO: The dollar rose against its major peers on Wednesday as attention turns to the conclusion of the Federal Reserve's latest policy meeting hoping for some forward guidance.
While it is expected to stand pat on interest rates, traders are keen to find out its plans following the two months of global market turmoil that came after December's hike, which was its first in almost a decade.
The Fed is also scheduled to release new forecasts for economic growth, inflation and employment.
"While there's little likelihood of any policy decision, the main focus will be on the accompanying statement," Stephen Innes, senior trader at OANDA Asia Pacific, told Bloomberg News.
It "may shed light on whether the market is under-pricing the likelihood of near-term US rate hikes".
In Tokyo, the dollar rose to 113.43 yen from 113.15 yen in New York while the euro dipped to $1.1100 from $1.1110. The single currency edged up to 125.86 yen from 125.70 yen.
The yen was also seeing selling pressure after the head of the Japanese central bank on Tuesday suggested it could cut interest rates further into negative territory.
The bank surprised markets in January with a shock announcement to slash rates to -0.1 percent, effectively charging lenders to park cash with it, in a bid to ramp up loans to boost the economy.
"The Fed meeting this evening has loomed large over Asian markets today," Angus Nicholson, a Melbourne-based market analyst at IG, said in a commentary.
"The challenge for the Fed is striking a delicate balance between warning the markets that a rate rise could come as soon as June, but not causing a rally in the US dollar that could kill off the nascent recovery in the US manufacturing sector."
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