Investing.com - The dollar was steady against a basket of other major currencies on Tuesday as markets looked ahead to the outcome of the Federal Reserve’s upcoming policy meeting on Wednesday.
EUR/USD edged up 0.06% to 1.2707, off Monday’s lows of 1.2664.
Investors remained on the sidelines amid concerns that recent signs of slowing growth in Europe and China could prompt the U.S. central bank to stick to its cautious outlook on monetary policy.
The Fed was likely to announce the conclusion of its asset purchasing stimulus program, known as quantitative easing on Wednesday, but was also expected to reassure markets that interest rates will remain on hold for some time to come.
The dollar slid on Monday after data showed that the U.S. service sector expanded at the slowest rate in six months in October, reinforcing expectations that the Fed will take its time in raising rates.
The dollar pushed higher against the yen, with USD/JPY up 0.27% to 108.09, not far from Monday’s almost three week highs of 108.24.
Elsewhere, the dollar was almost unchanged against the pound and the Swiss franc, with GBP/USD at 1.6116 and USD/CHF at 0.9491.
The Australian dollar advanced to two week highs, with AUD/USD rising 0.46% to 0.8841. Meanwhile, NZD/USD eased up 0.13% to 0.7903 and USD/CAD lost 0.28% to trade at 1.1214.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, was almost unchanged at 85.66.