Dollar on the defensive ahead of first Fed decision under Warsh

The dollar eased on Wednesday ahead of the Federal Reserve’s first policy decision under ​Chair Kevin Warsh, with lingering optimism over an interim US-Iran peace deal underpinning risk appetite and dampening ‌demand for the US currency. The yen found little respite against a weaker greenback and teetered further into intervention territory, after a well-telegraphed Bank of Japan (BOJ) rate hike delivered few surprises. Moves in currencies were largely subdued in the early Asian session, with investors hesitant to take on large ​positions ahead of the Fed’s rate outcome later in the day. The euro steadied at $1.1611 while sterling was little ​changed at $1.3430. The New Zealand dollar edged slightly higher to $0.5833. The Fed is widely expected to stand ⁠pat on rates at Warsh’s debut meeting. The statement, economic projections and news conference, however, will be scrutinised for any signals ​of the Fed dropping its easing bias as officials grow more hawkish on inflation risks.