© Reuters.  © Reuters.

By Gina Lee

Investing.com – The dollar was down on Wednesday in Asia, with investors fine-tuning their positions ahead of a U.S. Federal Reserve policy meeting.

The U.S. Dollar Index Futures that tracks the greenback against a basket of other currencies inched down 0.03% to 93.085 by 9:76 PM ET (2:57 AM GMT), giving up some earlier gains. The USD/JPY pair was down 0.15% to 105.28.

The Fed will meet later in the day to hand down its policy decision, its first meeting since Fed Chairman Jerome Powell announced a more relaxed approach to inflation at the Jackson Hole symposium on August 27. It is widely expected that the stance, widely expected to be continued, could weaken the greenback with the introduction of further stimulus measures.

However, some investors disagreed with those expectations.

“There’s a feeling in the market that maybe the Fed will try to act on its dovish tilt,” National Australia Bank (OTC:NABZY) senior currency analyst Rodrigo Catril told Reuters.

“Our sense is that there’s a risk there that the Fed doesn’t do much more than what it’s done already,” he added, possibly lifting U.S. yields and weigh on the yen.

The policy decision is also expected to introduce longer tenors for the Fed’s bond-buying program. Another area of interest to investors are the Fed’s economic projections, particularly on inflation and its direction.

“The three to 3.5-year projection horizon will give (Fed members) an opportunity to indicate how big an overshoot they expect will be required to get to the 2% average inflation target …. it will also give (them) an opportunity to indicate how much of an overshoot they are willing to tolerate,” Standard Chartered (OTC:SCBFF) head of FX research Steve Englander told Reuters.

The Bank of Japan and Bank of England will also hand down their respective policy decisions on Thursday.

The AUD/USD pair edged up 0.12% to 0.7309 and the NZD/USD pair inched up 0.01% to 0.6722.

The USD/CNY pair edged down 0.15% to 6.7699. The yuan continued to bask in the wake of Tuesday’s economic data indicating growth in industrial production and retail sales year-on-year, as well as pointing to China’s continuous economic recovery from COVID-19. The data also boosted investor hopes for a global recovery from the pandemic.

The GBP/USD pair edged up 0.22% to 1.2915. The pound rose on the back of Tuesday’s better-than-expected job figures, as well as opposition to a bill proposing to break the U.K.’s Brexit treaty with the European Union (EU). The U.K. will release a slew of data for August, including the consumer price index, later in the day.

Other relevant articles 
[2020-09-16 00:30:07] Day Ahead: 3 Things to Watch for September 16
[2020-09-15 22:35:04] Day Ahead: 3 Things to Watch for September 16
[2020-09-15 22:15:05] Dow Ends Flat as Financials Wobble Ahead of Fed; Tech Advances
[2020-09-15 22:15:05] Dow Ends Flat as Financials Wobble Ahead of Fed; Tech Advances
[2020-09-15 18:00:07] Apple ends Barclays credit-card partnership ahead of new devices:...
[2020-09-15 13:25:03] U.S. crypto, fintech firms to benefit from slimmed down...
[2020-09-15 12:45:06] Futures advance ahead of two-day Fed meet
[2020-09-15 11:10:03] Busy Week Ahead: How Are FX Traders Positioned?
[2020-09-15 10:25:02] SoftBank paused share buybacks in August ahead of asset sale...
[2020-09-15 08:40:04] European Stocks Mixed Ahead of Central Bank Meetings
[2020-09-15 06:40:03] Gold On The Rise As Dollar Heads Down
[2020-09-15 06:30:32] Dollar Down Over Raised COVID-19 Vaccines Hopes
[2020-09-15 05:30:06] Asian Stocks Edge Up Ahead of Fed Meeting, But Market Volatility Remains
[2020-09-15 04:35:26] Oil Edges Up Ahead of OPEC+ Meeting, But Oversupply Fears Cap...
[2020-09-14 22:15:26] Day Ahead: 3 Things to Watch for September 15
[2020-09-14 21:05:25] Pound Off Highs as PM Johnson Seeks Support for Brexit Plan Ahead of Vote
[2020-09-14 20:50:29] Gold Gets Early Ride up Ahead of Fed as Dollar Slides
[2020-09-14 17:00:28] Nikola Fights Back, Shares Bounce Down, Then Up
[2020-09-14 16:50:24] Commodities Week Ahead: Gold On Fed Watch; Oil Tracks Sally,...
[2020-09-14 10:50:22] EU, China sign food protection deal ahead of challenging summit
[2020-09-14 10:10:22] Still closed, Irish pubs show shortcomings of slow lockdown exit
[2020-09-14 06:10:22] Dollar Down, But Focus is on Pound’s Brexit Woes and Japan’s PM...
[2020-09-13 23:10:35] Ageing and empty: Japan next premier’s hometown highlights challenges ahead
[2020-09-13 15:35:19] Week Ahead: Stock Volatility To Rise; Dollar Could Bottom As Gold...
[2020-09-13 11:50:19] Energy & Precious Metals - Weekly Review and Calendar Ahead
[2020-09-13 09:40:19] South Korea eases social distancing for two weeks ahead of major holiday
[2020-09-12 18:25:16] Cuba shuts down interprovincial transportation due to new COVID-19 fears
[2020-09-12 12:55:15] Wall Street Week Ahead: Fed meeting in focus as stocks wobble and...
[2020-09-11 18:30:14] Drop in College Tuition Is Helping Hold Down U.S. Inflation
[2020-09-11 18:10:23] S&P 500: More To Go On The Downside?
[2020-09-11 12:35:11] As U.S. cracks down on more Chinese firms, global banks scramble to manage risk
[2020-09-11 05:30:11] Tokyo 2020 director leaves ahead of rearranged Games
[2020-09-11 03:50:10] Dollar Down, Gives up Earlier Gains as Volatility Remains
[2020-09-11 02:00:13] Rio Tinto CEO to step down after Australia cave blast review
[2020-09-11 00:35:11] Day Ahead: 3 Things to Watch for September 11
[2020-09-10 22:15:08] Dow Down 400+ Points as Bears Target Tech, Energy; Stimulus Hopes Fade
[2020-09-10 22:15:08] Day Ahead: 3 Things to Watch for September 11
[2020-09-10 19:10:08] Twitter expands misinformation rules ahead of U.S. election
[2020-09-10 17:30:08] Penn Gets Street-High Target Ahead of NFL Kickoff, Barstool Launch
[2020-09-10 16:15:08] Restoration Hardware Up as Brand Turns Luxe, Strength Ahead
[2020-09-10 15:00:12] Citi CEO Michael Corbat to step down
[2020-09-10 13:15:07] New York office glut signals market downturn as COVID bites
[2020-09-10 13:15:07] Advertising group aims to cut down on practice that harms news publishers
[2020-09-10 10:10:07] European Stocks Lower Ahead of ECB Meeting
[2020-09-10 09:10:08] Dollar Weakens, Euro Gains Ahead of ECB Meeting
[2020-09-10 06:05:06] Dollar Down With Investors Looking to Thursday’s ECB Meeting
[2020-09-10 03:55:24] Yum China shares set to open down 0.5% in Hong Kong market debut
[2020-09-10 01:15:11] UK house prices jump as buyers seek gardens after lockdown: RICS
[2020-09-10 00:30:11] Day Ahead: 3 Things to Watch for September 10
[2020-09-09 22:25:08] Day Ahead: 3 Things to Watch for September 10
[2020-09-09 21:55:08] Maserati rolls out new super sports car to drive turnaround ahead...
[2020-09-09 18:15:07] Palantir begins Wall Street charm offensive ahead of public...
[2020-09-09 17:10:07] Ugandan move to regulate online activity is tool to curb dissent...
[2020-09-09 05:05:06] Asian Stocks Down, Reacting to Tuesday’s U.S. Tech Stocks Selloff
[2020-09-09 03:35:06] Asian markets set to come under pressure after another down day on Wall Street
[2020-09-09 00:35:07] Day Ahead: 3 Things to Watch for September 9
[2020-09-08 22:20:04] Day Ahead: 3 Things to Watch for September 9
[2020-09-08 20:50:03] Airbus jet deliveries slip in August, stays ahead of Boeing
[2020-09-08 17:35:17] U.S. passenger airline traffic rising, but still down sharply...
[2020-09-08 12:30:03] BlackRock downgrades IG credit to neutral, ups exposure to...
[2020-09-08 12:15:03] U.S. judge temporarily halts plan to wind down census
[2020-09-08 07:15:07] U.S. shale producers race for federal permits ahead of...
[2020-09-08 06:40:04] Gold Down on the Back of Stronger Dollar
[2020-09-08 06:30:03] Oil Down Over Persistent Demand Worries
[2020-09-08 06:15:04] Exclusive: Exxon downsizes global empire as Wall Street worries...
[2020-09-07 20:00:27] 2 Healthcare ETFs That Could Be A Remedy For The Choppy Months Ahead
[2020-09-07 10:35:21] Samsung Elec to shut down sole China TV factory by Nov
[2020-09-07 08:15:21] IEA sees oil market stuck between no major slowdown but stalled...
[2020-09-07 07:55:21] Brexit showdown as UK threatens to undermine divorce treaty
[2020-09-07 05:50:22] China August exports rise 9.5% year-on-year, beat forcasts;...
[2020-09-07 05:30:23] Asian Stocks Mostly Down, China Releases Mixed Export and Import...
[2020-09-07 04:20:21] Oil Down on the Back of Huge Saudi Price Cuts for Asia Supply
[2020-09-07 02:25:21] SoftBank shares down 3% after media reports of tech firm bets
[2020-09-06 22:45:19] U.S. judge temporarily halts plan to wind down census
[2020-09-06 15:45:18] Week Ahead: Stock Rally To Endure But Beware 3 Red Flags, Sector...
[2020-09-06 13:05:18] Energy & Precious Metals - Weekly Review and Calendar Ahead
[2020-09-06 04:30:18] Kenin downs Jabeur to reach U.S. open fourth round
[2020-09-05 17:00:18] Bitcoin Crashes. You’ll Be Surprised To Hear What’s Next
[2020-09-05 12:40:14] After criticism, Trump says Pentagon will not shut down Stars and...
[2020-09-05 10:25:14] Lockdown protesters defy police as Australia coronavirus cases...
[2020-09-04 21:20:11] Gold Down 2% on Week; No End in Sight to Volatility 
[2020-09-04 21:20:11] Gold Down 2% on Week; No End in Sight to Volatility 
[2020-09-04 17:30:12] Crude Oil Falls, Dragged Down by Stocks; WTI Dips Below $40
[2020-09-04 14:25:10] Wall Street Week Ahead: U.S. stock market surge may run into...
[2020-09-04 13:30:11] Dow Futures Up 83 Pts Ahead of Payrolls; Tech Stocks Weak
[2020-09-04 13:25:10] Dow Futures Up 83 Pts Ahead of Payrolls; Tech Stocks Weak
[2020-09-04 12:55:10] Special Report: Australia faces down China in high-stakes...
[2020-09-04 08:55:10] Dollar Edges Higher Ahead of U.S. Employment Release
[2020-09-04 05:50:20] Oil Down in Asia, on Track for Weekly Loss
[2020-09-04 05:20:10] Dollar Steady in Asia Ahead of Jobs Report
[2020-09-04 00:35:11] Day Ahead: 3 Things to Watch for September 4
[2020-09-04 00:00:16] Pelosi, Mnuchin informally agree on stopgap bill to avoid U.S....
[2020-09-03 22:20:08] Day Ahead: 3 Things to Watch for September 4
[2020-09-03 20:05:07] White House says it does not expect a government shutdown at...
[2020-09-03 19:00:10] Ahead of U.S. August jobs data, high frequency numbers still show...
[2020-09-03 17:20:06] Bank of England says regulators must keep ahead of stablecoins
[2020-09-03 16:45:07] Graphic: ASOS, AO World and Ocado winners as online sales surge...
[2020-09-03 13:10:06] Stock Futures Lower, Consolidating Ahead of Claims Data
[2020-09-03 12:25:06] Facebook partners with two more companies ahead of FTC hearing on...
[2020-09-03 09:35:06] European shares open higher ahead of service-sector data