The dollar was stuck in a narrow range around ¥110 in Tokyo trading Wednesday, with investors retreating to the sidelines to await a statement by the U.S. Federal Reserve following the end of its two-day Federal Open Market Committee meeting later in the day.
At 5 p.m., the dollar stood at ¥110.18-18, down from ¥110.23-23 at the same time Tuesday. The euro was at $1.1209-1209, down from $1.1217-1217, and at ¥123.49-50, down from ¥123.65-65.
The dollar lost ground moderately in early trading, pressured by selling to adjust positions prior to the end of the Fed policy-setting meeting.
The U.S. currency briefly fell below ¥110 in the morning as the Nikkei stock average gave up its early gains.
After recouping some of the lost ground, the greenback moved in a tight band in the afternoon.
“Investors found it unnecessary to take fresh positions before the key U.S. event,” a currency broker said.
“Market participants have widely factored in an interest rate increase by the Fed,” an official at another currency broker said.
While expecting little surprise from the Fed’s decision, players were keenly waiting for a news conference by Fed Chair Janet Yellen as well as the Fed committee’s statement, hoping to have clues to future U.S. monetary policy management, market sources said.