LONDON: The dollar was a tad higher against the yen in directionless Asia trade Wednesday, with many investors avoiding taking new positions ahead of the outcome from the closely-watched U.S. the Federal Open Market Committee meeting.
Around 0450 GMT, the greenback was at Y123.47, compared with Y123.37 late Tuesday in New York.
Investors hope the FOMC outcome, followed by a news conference by Fed Chairwoman Janet Yellen, will shape the market’s view on the timing of when the Fed will start raising interest rates.
“The situation remains agonizing” for the Fed policy setting members, said Ayako Sera, head of market research division at Sumitomo Mitsui Trust Bank, adding that too much of a hawkish tone from Fed officials would lead to a higher dollar across the board at the time when the eurozone is running afoul of Greek issues.
