The dollar eased to around ¥109.10 in Tokyo trading Wednesday, with market players sitting on the fence ahead of the end of the U.S. Federal Reserve’s two-day policy-setting meeting.

At 5 p.m., the dollar stood at ¥109.15, down from ¥109.25 at the same time Tuesday. The euro was at $1.1890, down from $1.1916, and at ¥129.80, down from ¥130.19.

After moving around ¥109 in early trading, the dollar climbed above ¥109.10 later in the morning reflecting dollar-buying by Japanese importers for funds for settlement and purchases induced by a slight rise in the key long-term U.S. Treasury bond yield in off-hours trading.

However, the buying momentum fizzled out as investors “refrained from testing the dollar’s upside ahead of key events,” including the Fed’s Federal Open Market Committee meeting, which ends later on Wednesday, a currency broker said.

The greenback moved in a narrow range throughout the afternoon amid a growing wait-and-see mood, with market activities almost limited to position-adjusting trading, market sources said.

Attention is being paid to whether the Fed, and its chairman, Jerome Powell, will warn against the recent uptrend of long-term U.S. interest rates and make any suggestions that the U.S. central bank could implement an interest rate hike earlier than currently anticipated, the sources said.

The dollar-yen pair’s near-term course will be determined by stock market developments and moves of long-term U.S. interest rates following the release of the Fed’s statement on the outcome of the FOMC meeting and Powell’s remarks at a news conference to be held after the policymaking meeting, an official at a Japanese bank said.

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