TOKYO (Reuters) – Major currencies stuck to tight ranges in early Asian trading on Wednesday as investors awaited the outcome of the Federal Reserve’s March policy meeting later in the day.
Against a basket of key rival currencies, the dollar was broadly steady at 96.388 after hitting its lowest level since March 1 at 96.291 in overnight trading.
Index - Percent - High - March - Views
The index has lost almost 1.4 percent after climbing to a three-month high of 97.71 on March 7, on views the Fed will strike a dovish tone during its latest policy meeting.
Investors are focused on the Fed to see whether the central bank will affirm its commitment to “patient” monetary policy and for clues about the likely path of U.S. borrowing costs.
Fed - Rate - Announcement - GMT - Wednesday
The Fed is due to make its rate announcement at 1800 GMT on Wednesday, when it is expected to keep its benchmark overnight interest rate unchanged.
“The dollar continued its drift lower but momentum seems to be waning on the move as volatility across the majors continues to fall,” said Nick Twidale, chief operating officer at Rakuten Securities Australia in Sydney.
Market - Break - Trades - FOMC - Federal
“The market is poised for potential break out trades if the FOMC (Federal Open Market Committee) surprises later today,” he said in a note.
Most currencies stayed within well-trodden trading ranges before the Fed decision, as market participants were cautious after taking cues from U.S....
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