Investing.com – The U.S. dollar was lower on Wednesday as investors wait for the Federal Reserve rate decision later in the day.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.57% to 96.06 as of 10:21 AM ET (15:21 GMT).
The Fed is expected to increase rates by 25 basis points for the fourth time this year at 2:00 PM ET (19:00 GMT). Investors will be watching for any new comments on possible policy changes in 2019 and poring over forecasts for next year, also known as the dot plot.
Fed officials, including Fed Chairman Jerome Powell, have said interest rates are nearing neutral and have become more cautious about the FOMC policy amid worry of slowing global growth.
The dollar was down against the safe-heaven Japanese yen, with USD/JPY slumping 0.3% to 112.19.
Meanwhile the pound was higher, with GBP/USD up 0.19% to 1.2663 as UK Prime Minister Theresa May is still trying to work with the European Union to get assurances on the backstop agreement. The euro was also pushed up by the lower dollar, with EUR/USD rising 0.6% to 1.1430.