The dollar was trading at 140.01 yen by 1140 GMT, after falling to 139.58 yen earlier in the session, further off Friday’s low of 140.285, its lowest since late December, which it hit on Friday and levels not seen since July 2023.
The meeting comes US central bank Tuesday and Wednesday are scheduled for a busy week of monetary policy meetings, with interest rate decisions also expected from the Bank of England and the Bank of Japan on Thursday and Friday.
Market speculation over the size of the Fed rate cut this week has shifted over the past month, driven by comments from Fed officials and economic data, with markets debating whether the Fed will respond to the weak labor market with an aggressive rate cut or whether it will take a slower approach and wait for more clues.
And he landed Dollar IndexThe .USD, which measures the performance of the US currency against six major currencies, rose by about 0.3 percent to 100.69 points.
US Treasury yields fell ahead of the Federal Reserve’s upcoming meeting, with the likelihood of a half-percentage point rate cut increasing.
The yield on the benchmark 10-year Treasury note has fallen 30 basis points in nearly two weeks.
Investors are looking forward to the Bank of Japan’s interest rate decision on Friday, as the bank is expected to keep the rate at 0.25 percent after raising it twice already this year.
The pound rose 0.6 percent to $1.3199 and the euro rose 0.4 percent to $1.1120.
The European Central Bank cut interest rates by 25 basis points last week, but its president, Christine Lagarde, has scaled back expectations of another cut next month.
The Bank of England is expected to keep its main interest rate at 5 percent on Thursday after starting its easing phase with a 25 basis point cut in August.
