TOKYO (MarketWatch) -- The dollar gained on its major counterparts in Asian trading Wednesday, but stuck to narrow ranges as investors awaited the outcome of the U.S. Federal Reserve's two-day policy meeting.
The Federal Open Market Committee is widely expected to leave its fed funds rate target in a range of 0% to 0.25%, but investors will be watching to see whether the central bank unveils any changes to its Treasury and mortgage asset-purchase program to further boost liquidity.
"Given that the prerequisite for economic recovery has always been a snapback in credit growth, we judge the Fed will conclude that more non-traditional policy accommodation is required," Michael Gregory, senior economist at BMO Capital Markets, said in a note to clients.
The dollar was trading at 95.48 yen, up from 95.17 yen in late North American trading Tuesday.
The euro bought $1.4075, down from $1.4089 late Tuesday.
The yen's strength in recent months has contributed to a slump in Japanese exports.
Data on Wednesday showed the surplus contracted further in May, as exports withered in the wake of the global slowdown. The surplus for the month fell 12.1% from the year-ago period to 299.8 billion yen, the Ministry of Finance said. See full story on Japan trade data.
