Dollar sits at seven-week high vs Yen ahead of Fed meeting

Dollar sits at seven-week high vs Yen ahead of Fed meeting

The dollar held near a seven-week high against the Japanese yen on Wednesday before the outcome of a Federal Reserve meeting where officials are widely expected to cut interest rates by a quarter of a percentage point.

“The focus will be on the policy outlook and the Fed’s dot plots, and with market positioning broadly neutral, it should be a quiet session for the dollar,” said Thu Lan Nguyen, a currency strategist at Commerzbank in Frankfurt.

Morgan Stanley strategists believe that any dollar upside is likely to be capped as market expectations are not overly dovish and a trade deal between the United States and China seems likely.