The dollar moved firmly around ¥108.20 in Tokyo trading on Wednesday, as investors waited for monetary policy decisions by the U.S. Federal Reserve and the Bank of Japan.

At 5 p.m., the dollar stood at ¥108.19-19, up from ¥108.12-12 at the same time on Tuesday. The euro was at $1.1054-1055, up from $1.1016-1016, and at ¥119.61-61, up from ¥119.11-11.

The dollar gradually rose to around ¥108.30 in the morning, aided by real demand-backed buying and firmness of the benchmark 225-issue Nikkei stock average.

After the bout of buying ran its course, however, the greenback moved in a narrow range around ¥108.20 in the afternoon, due to a lack of new trading incentives.

The dollar-yen rate “is holding its breath” to wait for various events, including the U.S. Federal Reserve’s two-day Federal Open Market Committee meeting, which ends later on Wednesday, and the Bank of Japan’s two-day policy-setting meeting from Wednesday, an official at a foreign exchange margin trading service firm said.

With majority of market participants estimating an interest rate cut of 0.25 percentage point by the Fed, the official added that market players will focus on the Fed’s dot plot, a chart showing the FOMC members’ estimations on future interest rates, and Fed Chairman Jerome Powell’s news conference, which will be held after the meeting, to help determine the U.S. central bank’s stance on future interest rate cuts.

On the other hand, an official at a Japanese bank noted that the BOJ “will likely do nothing” in its Policy Board meeting.

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