Investing.com - The dollar was little changed against the euro and the yen on Tuesday following declines in the previous session as investors looked ahead to the conclusion of the Federal Reserve’s two day policy meeting on Wednesday.
EUR/USD was at 1.2708, off Monday’s lows of 1.2664.
The greenback remained under pressure amid concerns that recent signs of a slowdown in growth in Europe and China could prompt the U.S. central bank to stick to its cautious outlook on monetary policy.
Data on Monday showing that German business confidence fell to the lowest level since December 2012 this month added to fears over the outlook for fourth quarter growth in the euro area’s largest economy.
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, as new order growth slowed and business confidence declined.
Research firm Markit said its U.S. services purchasing managers' index ticked down to 57.3 this month, from 58.9 in September.
A separate report showed that U.S. pending homes sales rose just 0.3% in September, falling short of expectations for a 0.5% gain.
USD/JPY was steady at 107.82, off Monday’s almost three week highs of 108.24.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, slid 0.10% to 85.54.