In afternoon trading on Wednesday in Asia, the U.S. Dollar traded steady against the Yen and the Euro as investors are sitting on the side lines, pending the outcome of the Federal Reserve’s Open Market Committee meeting which ends today.  Investors are speculating that the Federal Reserve will cut interest rates 25 basis points, to 2%. 

Prior to the press release by the FOMC, which is expected to give investors an indication of where interest rates are headed, the first quarter U.S. economic data will be released which is likely to influence the Federal Reserve’s decision with respect to interest rates.

On April 30, 2008 at 01:00 pm (05:00 GMT), the U.S. Dollar traded at 103.97 Yen compared to 104.08 Yen, while the Euro traded at $1.5582 compared to $1.5569 in early trading in Sydney.

Some analysts and economists are predicting that the Federal Reserve will hold interest rates steady after todays expected reduction in the key interest rate, in order to curb inflation.  However, other analysts are unsure whether or not the Federal Reserve’s rate cutting is coming to an end, and believe additional cuts will be necessary to stimulate the U.S. economy.