The US dollar hovered close to a one-week low versus major peers on Wednesday ahead of a widely expected interest rate cut from the Federal Reserve later in the day.

The greenback lost additional ground against the Japanese yen after US Treasury Secretary Scott Bessent signaled the new Japanese government is open to Bank of Japan rate hikes, ahead of a policy decision on Thursday.

Australia's dollar reversed an earlier small decline to rise 0.3% to $0.6604 after hotter-than-expected consumer price data raised doubts about a rate reduction from the central bank next week.

"The interest is in the guidance provided by (Fed) Chairperson Jerome Powell at his press conference," said Kyle Rodda, an analyst at Capital.com. "A lot of dovishness is baked into the curve, with a cut in December alm

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