Looming Fed meeting pushes dollar down against yen

The dollar is down against the yen today (October 29th), as
forex traders remain cautious in the run-up to the next
Federal Reserve policy meeting.

Late Asian trade saw the greenback slip to 97.49, a session low,
before eventually settling down 0.15 per cent at 97.53.

It is widely believed the Fed will not decide to start winding
back its huge asset-purchase programme in tomorrow’s meeting, and
is likely to hold off until next year before dialling back monetary
easing.

US economic recovery continues to appear mixed. Data published
early this week showed that industrial production rose by 0.6 per
cent in September, although another report indicated that pending
homes sales dropped by more than five per cent.

Still, until the central bank has made any announcements it is
unlikely investors will rush into buying US currency, keeping
the 
exchange rate relatively weak.

The yen, meanwhile, enjoyed some support overnight as Asian
equities slipped. As Japan’s Nikkei index slipped by 0.49 per cent
after gaining on Monday, investors flocked back to the yen to make
the most of its “safe haven” appeal.