The U.S. dollar edged lower on Europe Wednesday, trimming its gains set in Asian against the yen as attention turned to the outcome of two-day U.S. Federal Reserve policy meeting, amid expectations of further reduction in the bank`s stimulus drive. Greenback's demand was also pressured following unexpected slump in US durable goods orders in December where Core durable goods orders or those excluding the volatile transportation items, declined 1.6%, the largest slump since March. However, data showed that the consumer confidence rose for a second month, reaching 80.7 in January, the highest since August. Yen edged slightly higher against the U.S. dollar on safe-haven demand as investors awaited the outcome of FOMC's two-day meeting, where policy makers are expected to further scale back Fed's monthly bond purchases by another $10 billion to a total of $65 billion as it did in December. Based on the four-hour chart, the USDJPY hit a session low at ¥102.683, after which consolidated to currently trade at ¥102.771, adding 0.17% for the day. The USDJPY touched a session high of ¥102.987. The pair will most probably slip further to the downside if the pair managed to stabilize below 102.517 support level. Market sentiment firmed up after Turkey's central bank announced aggressive rate hikes in a bid to calm jitters over emerging markets in general, following a broad based selloff triggered by worries over the impact of cuts in Fed stimulus and concerns over a possible slowdown in China . Turkey , who joins a growing group of emerging economies, ended an emergency midnight meeting of the central bank with a huge hike of the interest rate all the way to 10 percent from 4.5 percent in an apparent effort to quell volatility and get banks to hold money longer. The Turkish lira rose 0.0271 points to a session high of TL2.2750 versus the dollar after previously hitting a session low of TL2.1627. The USDTRY pair is currently trading at 2.2621 as of 6:17 ET . The kiwi looked likely to remain supported ahead of Thursday's reserve bank policy meeting, with markets split on whether the central bank will raise rates at this meeting or the next, as inflation remains above forecasts. The NZDUSD pair is currently trading at $0 .82747afterstarting the session at $0.82849 .The pair so far hit a session low of $0.82725 .
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