The U.S. dollar held near a four-week trough against a basket of major currencies on Wednesday as investors bet that any move by the U.S. Federal Reserve to roll back stimulus will be very modest.
The Fed’s highly anticipated rate review ends later in the day and markets expect the central bank will probably announce a small reduction to its $85 billion monthly bond-buying program.
Indeed, since the disappointing U.S. nonfarm payrolls report on Sept. 6, markets have scaled back expectations on the size of any pullback in stimulus.
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