New york: The US dollar traded steady on Wednesday as investors awaited the Federal Reserve's monetary policy decision later in the day, with markets widely expecting an interest rate cut at what is seen as one of the most closely watched policy meetings in years.

According to Qatar News Agency, the Japanese yen remained volatile after sliding sharply overnight, pressured by wide interest rate differentials between Japan and other major economies, despite expectations that the Bank of Japan may tighten monetary policy next week. The yen rose 0.15% to 156.64 per dollar, after falling 0.6% in the previous session to near 157 per dollar in the absence of a clear market catalyst.

The Australian dollar held on to gains from the previous session, rising 0.8% against the yen. Against the US dollar, it traded at $0.6641, while the New Zealand dollar slipped 0.12% to $0.5772.

In Europe, the euro was little changed at $1.1628, while the pound edged up 0.06% to $1.3305.

Meanwhile, the dollar index, which measures the greenback against six major currencies, held steady at 99.20.