Markets Await Interest rate Decision by the U.S. Federal Reserve

The Euro eased slightly versus the U.S. Dollar, while the Japanese Yen gained across the board as investors expect the U.S. Federal Reserve to cut interest rates to almost zero.

The Euro slipped after hitting a 2-month high of $1.37 in early trading in Asia because nervous investors adjusted their trading positions ahead of the interest rate decision by the U.S. Federal Reserve, while heightened risk aversion helped the low-yielding Japanese Yen.

The Euro also fell after concerns increased about a deterioration of the Euro zone economies, as a survey of purchasing managers' showed that December activities in both the manufacturing and services sector dropped to a record low.

On December 16, 2008 at 09:09 GMT, the Euro lost 0.3% on the day versus the U.S. Dollar and traded at $1.3670, after briefly touching on an 8-week high of $1.3739 in Asia trading.  Against a group of major currencies, the Dollar .DXY edged up slightly by 0.1% to 82.191.  The U.S. Dollar fell by 0.4% against the Japanese Yen and traded at 90.26 Yen; the Euro fell by 0.7% against the Japanese Yen to 123.37 Yen.

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