The US dollar was on Wednesday recorded firm against a basket of its other major counterparts as the market eagerly awaited for the much anticipated policy statement from the Federal Reserve later in the day.
The market participants had been waiting with baited breath for the Fed’s announcement over its asset purchasing stimulus program called quantitative easing.
The US central bank was highly expected to make the announcement about what it decided about its quantitative easing program following the conclusion of its two day policy meeting later on Wednesday.
The Fed was also expected to clear the air about what it is going to do for the interest rates, i.e. will it remain on hold for some time now amid the rising concerns for sluggish growth in Euro Zone and China.
EUR/USD rose 0.05 percent to 1.2739, holding below one week highs of 1.2764 on Tuesday.
The US dollar emerged weaker against other major rivals on Tuesday following a report showing that the orders for long lasting manufactured goods by the United States fell unexpectedly for the second successive occasion in September.
Subsequently, the greenback trimmed back losses after another report for consumer confidence in the US emerged showing its surge to the highest level in seven years in October.
USD/JPY dropped 0.06 percent to 108.08, holding above the lows of 107.68 recorded on Tuesday.
On the other hand, the US dollar showed little changes against the Swiss franc and the pound, with USD/CHF at 0.9465 and GBP/USD at 1.6120.
The Australian dollar was recorded at three-week high, with AUD/USD rising 0.28 percent to hit 0.8880.
USD/CAD fell 0.14 percent to 1.1151, while NZD/USD rose 0.27 percent to 0.7937.
The US dollar index, which keeps a track record of the performance of the greenback against the major currencies of six countries, turned almost flat at 85.44.