Dollar Maintains Three-Day Gain Versus Yen Before Fed Decision

The dollar held a three-day gain against the yen amid speculation Federal Reserve policy makers won’t announce any major changes to monetary stimulus when they conclude a meeting today.

The Bloomberg U.S. Dollar Index remained higher after its biggest rally in almost eight weeks with the Fed due to wrap up it’s two-day meeting and the Bank of Japan set to decide on policy tomorrow. The euro was supported ahead of data forecast to show consumers in the currency bloc are the least pessimistic in more than two years. An index of currency volatility rose from the lowest level since December.

The greenback was little changed at 98.16 yen as of 10:25 a.m. in Tokyo from yesterday, when it advanced 0.5 percent. It rose 0.1 percent to $1.3736 per euro. Europe’s shared currency bought 134.84 yen from 134.96 in New York.

Bloomberg’s dollar gauge, which monitors the currency against 10 peers, was little changed at 1,006.34. It gained 0.4 percent yesterday, the most since Sept. 5.

A measure of price swings among the currencies of Group of Seven nations rose for a third day yesterday. The JPMorgan G7 Volatility Index was at 7.61 percent after touching 7.48 percent in the previous session, the lowest level since Dec. 21.

(Source: Bloomberg)