TOKYO , Jan. 29 -- ( Kyodo ) _ The U.S. dollar moved narrowly in the lower 103 yen zone in Tokyo on Wednesday as market players withdrew to the sidelines ahead of the end of the U.S. Federal Reserve's two-day policy meeting, with cuts to its stimulus looming. At 5 p.m. , the dollar fetched 103.12-14 yen compared with 102.88-98 yen in New York and 102.78-79 yen in Tokyo at 5 p.m. Tuesday . It moved between 103.03 yen and 103.45 yen during the day, changing hands most frequently at 103.25 yen . The euro was quoted at $1.3662-3664 and 140.89-93 yen against $1.3665-3675 and 140.66-76 yen in New York and $1.3664-3665 and 140.44-48 yen in Tokyo late Tuesday afternoon. The dollar and the euro drew buying against the yen early in the morning as the Turkish central bank's decision to raise its key interest rates reduced the Japanese currency's safe-haven appeal, traders said. The central bank increased its overnight lending rate to 12 percent from 7.75 percent, its one-week repo rate to 10 percent from 4.5 percent, and its overnight borrowing rate to 8 percent from 3.5 percent at an emergency meeting on Tuesday to guard the lira from further depreciation. In addition, worries subsided that a major Chinese trust company would default on its debts, helping lead market players away from the yen, said Minori Uchida , head of Tokyo global market research at the Bank of Tokyo-Mitsubishi UFJ . Trading was subdued later in the day as market participants awaited the end of the U.S. Federal Reserve's policy meeting, traders said. The Fed is widely expected to trim $10 billion from its current $75 billion monthly asset purchases. Some remain wary of indications the U.S. central bank will accelerate the speed of stimulus tapering or shift its forward guidance for that purpose, which could exacerbate recent drops in emerging currencies, said Yuji Saito , director of foreign exchange at Credit Agricole Corporate & Investment Bank in Tokyo . The Fed meeting through Wednesday will be the last for Chairman Ben Bernanke , who will be replaced by Vice Chair Janet Yellen . The U.S. central bank's next policy meeting will be held March 18-19 . While many of the voting members on the Fed's policy board this year are hawkish, meaning they are in favor of withdrawing stimulus, the central bank is unlikely to accelerate the pace of cuts unless inflation rates jump, Uchida said.
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