Dollar steady, yen wobbles ahead of Japan election

The US dollar was steady on Wednesday as investors remained cautious after a partial government shutdown swiftly ended while the yen wobbled near a two-week low ahead of what is shaping up to be an unpredictable, opens new tab national election over the weekend. The currency markets were still digesting Kevin Warsh’s nomination by US President Donald Trump as the next Federal Reserve chief, with the dollar broadly firming on expectations that Warsh is unlikely to push for rapid rate cuts. Investors have also been relieved as the appointment eased some of the concerns over the Fed’s independence after Trump’s constant attacks on the central bank and current Fed Chair Jerome Powell. The euro was at $1.1814 in early trading, while sterling stood at $1.3693, steady ahead of policy meetings at the European Central Bank and the Bank of England on Thursday.