Yen climbs to two-week high ahead of Fed policy decision

The dollar and the yen gained ground on Wednesday as traders held on to their positions ahead of a U.S. Federal Reserve policy decision. Meanwhile, the yuan held gains on a positive Chinese economic outlook. 

The yen last stood at a two-week high of 105.26 on the dollar. The dollar rose against other majors after suffering a drop on Tuesday. 

The Aussie fell 0.1% to $0.7294, while the kiwi slid to $0.6708. The euro sat at $1.1837.

The Fed is expected to release its policy decision later in the day after adopting a more dovish approach to inflation. Investors are also looking for clues on the Fed’s economic projections and bond-buying programme.

The British pound recovered from last week’s lows on stronger-than-expected jobs figures. It sat at 1.2877 on the dollar and at 91.87 pence on the euro.

The yuan held its gains as positive economic data reinforced the market’s perception that China’s economy is recovering from the pandemic.

In offshore trade, the yuan stood at 6.7835 on the dollar.