Dollar steady ahead of Fed decision; Aussie falls after inflation data
TLT•Other major currencies remain subdued
The euro EUR= was nursing losses after falling to a one-month low in the previous session, inching up 0.03% to $1.1389.
Sterling GBP= eased 0.03% to $1.3287, languishing near its weakest level since July 1. The New Zealand dollar NZD= declined 0.08% to $0.5783.
The dollar was firm at 101.38 against its peers =USD and stood near a 40-year peak against the yen at 163.74 JPY=.
Yen weakness keeps intervention risk in focus
The persistent weakness in the yen has left traders on alert for any potential intervention from Japanese authorities to shore up the ailing currency.
"There is a possibility that the FOMC's policy decision and the Chair's press conference could trigger a further strengthening of the dollar, pushing USD/JPY to 164," said Hirofumi Suzuki, chief FX strategist at SMBC.
"The likelihood of FX intervention appears significant, as Japanese financial authorities have stepped up their warnings. In terms of timing, if the yen depreciates further following the BOJ's Monetary Policy Meeting, that could provide a trigger for intervention."
Adding to inflation fears, oil prices were back on the rise after the U.S. military said it intercepted multiple ballistic missiles launched by Iran towards U.S. forces in the Middle East.
