The dollar edged lower against a basket of major world currencies in thin trade on Wednesday as investors refrained from taking bold positions ahead of an afternoon post-policy meeting statement from the Federal Reserve. Expectations that the Fed will keep up its mammoth stimulus of bond purchases well into next year has weakened the dollar for well over a month, but many analysts believe it is poised for a rebound.
The dollar index, which tracks the greenback against six currencies but is dominated by the euro, traded down 0.1 percent at 79.518, below an eight-day peak of 79.692 earlier in the global session but well above Friday's nine-month low of 78.998. The index, which rose during the previous three sessions, is down 0.8 percent in October. That follows a 2.3 percent drop in September, Earlier in the session, weak private sector jobs data emboldened expectations that the Fed will keep the status quo on its bond purchases well into next year.
The euro was last up 0.2 percent at $1.3764, having backed off a 23-month peak of $1.3832 set on Friday. Traders said the euro's failure to make a sustained break above $1.3800 left it vulnerable to a correction. Against the yen, the dollar was up 0.1 percent 98.24 yen, having earlier hit a one-week high of 98.31 yen, according to Reuters data.
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