USD/JPY at 103 on Fed Bets

The dollar traded at almost a five-year high versus the yen as the Federal Reserve begins a two-day meeting that may will result in a reduction of currency-debasing stimulus.

The greenback fluctuated against the euro as central bank policy makers decided whether to begin reducing $85 billion per month of bond-buying, known as quantitative easing. The Turkish lira fell after local media said that sons of the economy and interior ministers and Halkbank’s chief executive officer were among those arrested as part of a corruption probe. Volatility among Group-of-Seven currencies declined from a two-month high.

“There’s some liquidation and position adjustments going on, but it’s just noise,” Richard Franulovich, the chief currency strategist for the northern hemisphere at Westpac Banking Corp. in New York, said in a phone interview. “There’s really little trading going on other than what needs to be done.”

Bloomberg

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