Investing.com - The dollar was trading in a narrow range against the euro and the yen on Thursday as investors awaited the conclusion of the closely watched Federal Reserve policy setting meeting later in the day.
EUR/USD inched up 0.12% to 1.1304 from 1.1288 late Wednesday.
The dollar pushed higher against the yen, with USD/JPY up 0.2% to 120.8 compared to 120.55 late Wednesday.
Markets showed little reaction after trade data showed that Japan’s exports slowed for a second straight month in August, underlining fears over slowing global demand and adding to pressure on the Bank of Japan to expand its stimulus program.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, dipped 0.13% to 95.38.
Investors remained on edge amid uncertainty over whether the Fed would hike short term interest rates for the first time in almost a decade on Thursday.
An increase in interest rates would boost the greenback by making it more attractive to yield-seeking investors.
The dollar eased against the other major currencies on Wednesday after data showing that U.S. inflation unexpectedly fell for the first time in seven months in August tempered expectations for a rate hike.
The Labor Department said the consumer price index dipped 0.1% last month after a 0.1% increase in July.
Fed Chair Janet Yellen has said that an interest rate increase is data dependent but has also indicated that she expects to begin raising rates before the end of the year.