Greenback sticks to tight ranges

On Tuesday, the evergreen buck was almost flat against the Japanese yen and the common currency during Asian trade, with many traders reluctant to take positions ahead of monetary policy decisions in Japan and America.

The US dollar trading at ¥101.77, compared with Monday’s outcome of ¥101.91. The common currency stood intact at $1.1174 midday.

The WSJ Dollar Index, a measure of the greenback against a basket of crucial currencies, sank 0.04%, being worth 86.87.

Market participants are keeping an eye open on the BOJ’s policy decision on Wednesday followed by the Fed gathering hours later.

In Tokyo, many currency-market watchers expect Japan’s major bank to take steps to steepen the yield curve. The given outcome that could result in lower purchases of superlong Japanese government bonds by the BOJ. However, they’re divided over whether Japan’s major financial institution will take further steps including a drop in interest rates, thus putting them deeper into negative territory.

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