USD/JPY Steady Around 102.70 with Eyes on Fed

The dollar regained a firmer footing against the yen on Tuesday, as expectations the U.S. Federal Reserve will scale back its stimulus further pulled the U.S. currency off a seven-week low against its Japanese counterpart.

While anxiety about emerging markets has increased the safe-haven appeal of the yen, investors were wary of taking aggressive positions against the dollar ahead of the Fed’s two-day meeting beginning later in the session.

The U.S. central bank is seen as likely to slice another $10 billion from its bond buying, as they focus more on the recovering U.S. economy and less on the recent rumbles in emerging markets.

CNBC

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