The world's reserve currency was hovering against its rival monetary units on Wednesday as anticipation heightened in advance of the U.S. Federal Reserve's decision about stimulus measures, Bloomberg reports.
As two days of Fed policy maker meetings close early Wednesday afternoon, chairman Ben Bernanke is scheduled to conduct a press conference to disclose whether the body will taper asset purchases. The press conference is scheduled for 2 p.m.
"From the FX perspective, the start of tapering has already been discounted. There is a risk of volatility if the Fed doesn't taper," currency investment director Ken Dickson with Standard Life Investments in Edinburgh told Reuters on Wednesday. "It is not a good idea for any central bank to settle on something and then pull it off course."
The greenback fell 0.2 percent against the Japanese. It slightly rose against the common currency of the European Union, edging up 0.1 percent.
Expectations are high that the Fed will slash stimulus, according to Reuters. The nation has released stronger-than-expected economic data, which is likely to influence the decision. The body also is likely to keep interest rates low, the news source reports.
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