Investing.com - The dollar held steady against against the other major currencies on Tuesday, as investors continued to focus on the Federal Reserve's upcoming policy statement on Thursday.
The dollar was lower against the yen, with USD/JPY down 0.51% at 119.63.
Earlier Tuesday, the Bank of Japan said it had not changed its policy calling for ¥80 trillion in annual asset purchases by the central bank, to help spur inflation and stimulate growth.
Meanwhile, sentiment on the dollar remained vulnerable amid concerns that mixed U.S. economic reports and recent volatility in global financial markets will prompt the U.S. central bank to refrain from hiking interest rates on Thursday.
Fed Chair Janet Yellen has said that an interest rate increase is data dependent but has also indicated that she expects to begin raising rates before the end of the year.
The dollar was higher against the euro, with EUR/USD slipping 0.11% to 1.1305.
Data on Tuesday showed that the ZEW economic sentiment index for Germany fell to 12.1 in September from 25.0 the previous month. Analysts had expected the index to hit 18.4 this month.
Elsewhere, the dollar was steady against the pound, with GBP/USD at 1.5423 and higher against the Swiss franc, with USD/CHF up 0.13% at 0.9697.
The pound briefly strengthened after the U.K. Office for National Statistics reported that the consumer price index rose 0.2% last month, in line with expectations, after a 0.2% fall in July.
Year-on-year, U.K. consumer prices were flat in August, in line with expectations and following a 0.1% downtick the previous month.
Core CPI, which excludes food, energy, alcohol and tobacco, rose at an annualized rate of 1.0% in August, as expected, after a 1.2% rise the previous month.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.22% to 0.7120 and with NZD/USD easing 0.08% to 0.6325.
The Aussie came under pressure after the minutes of the Reserve Bank of Australia's latest policy meeting reiterated that very low interest rates will continue to support growth.
Meanwhile, USD/CAD edged down 0.13% to trade at 1.3246.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 95.39.