Dollar holds firm ahead of US Federal Reserve meeting

US Currency. AP FILE PHOTO

TOKYO —  The dollar held its own against other currencies in Asia on Wednesday as investors wait for the outcome of a US Federal Reserve meeting later in the day.

The greenback was at 107.23 yen in Tokyo midday trade, compared with 107.15 yen in New York Tuesday afternoon.

The euro bought $1.2955 and 138.92 yen against $1.2957 and 138.85 yen.

Thursday’s too-close-to-call vote on independence for Scotland was playing on the pound, which dipped to $1.6257 from $1.6268 in US trade.

The latest polls show a narrow lead for the “No” camp, but the pro-independence side has gained ground in recent weeks and swinging voters appear to have enough sway to overturn the result.

While the US Federal Reserve prepares to wrap up a two-day policy meeting, there is caution about the prospects of it tightening monetary policy.

The policy committee will release its policy statement around 1800 GMT Wednesday, followed by a news conference with bank chief Janet Yellen.

Market players are looking for any change in the Fed’s statement, which could give a clue about when it will start raising its key interest rates.

“We look for no change in the Fed funds target, and see another $10 billion reduction” in the asset-purchasing program, Credit Agricole said in a note.

“We believe that a move to amend the forward guidance is afoot, dropping or downplaying the reference to low rates for a ‘considerable time’ to focus on state-contingent guidance,” it said. “However, the timing of the shift is uncertain,” it added.

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