NEW YORK (CNNMoney.com) -- The dollar was mixed against major currencies Wednesday as investors awaited the Federal Reserve's latest policy statement.
What prices are doing: The dollar rose 0.1% against the euro to $1.2257, but fell 0.5% to ¥90.14 against the Japanese yen.
The pound extended gains, rising 0.6% versus the dollar to $1.4895 after the U.K. announced its most severe budget cut in decades on Wednesday.
What's moving the market: The Federal Reserve is scheduled to release its latest policy statement at 2:15 ET.
While key interest rates are widely expected to be held near historic lows, investors will be scrutinizing the statement for any signs that the central bank plans to raise rates in the near future.
Meanwhile, a report on new home sales from the Census Bureau is due at 10 a.m.
Sales are expected to have fallen to a seasonally adjusted annual rate of 430,000 units in May from a 504,000 unit rate in the previous month, according to a consensus of economists surveyed by Briefing.com.
On Tuesday, a report from the National Association of Realtors showed that existing home sales missed expectations, falling 2% to a seasonally adjusted annual unit rate of 5.66 million in May from an upwardly revised rate of 5.79 million in April.
What analysts are saying: The dollar is likely to remain in a narrow range in the coming weeks unless U.S. economic data signals that the economy is improving, said Kevin Chau, a currency analyst at IDEAGlobal.
"In the long term though, it makes sense that the dollar will be stronger given that the problems in Europe are not going to go away," he said. "And if data in the U.S. continues to be weaker, people are going to have to revise their forecasts for U.S. growth and we'll see more of a safe haven flight into the dollar."
