USD/JPY up to 98.20 as Fed Meets

The dollar rose for a third day against the yen as the U.S. Federal Open Market Committee began a two-day meeting amid forecasts it won’t announce any major changes to its asset-purchase program.

The Bloomberg U.S. Dollar Index climbed to the highest level in more than a week before the policy makers issue a statement tomorrow. Australia’s dollar slid versus all of its 16 major peers after Reserve Bank Governor Glenn Stevens said it will probably become “materially lower,” and the South African rand dropped against all but the Aussie. The yen gained earlier versus the dollar as jobs and retail sales rose before a Bank of Japan meeting this week.

“Ahead of the FOMC, people might be a bit more prudent and reducing risk positions,” Sebastien Galy, a senior foreign-exchange strategist at Societe Generale SA in New York, said in a phone interview. “The foreign-exchange market in general is more reticent to take on risk than the stock market.”


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