Tokyo: The dollar edged higher today as investors focused on the Federal Reserve's upcoming interest rate decision, with trading subdued during Asian hours and Japanese markets closed for a holiday. The euro dipped 0.07 percent to $1.1705, while sterling slipped 0.05 percent to $1.3513, as both currencies continued to retreat from their highs earlier this month. The dollar index held steady at 98.68.

According to Oman News Agency, the Fed is widely expected to leave rates unchanged when it announces its policy decision later today. The Canadian dollar was little changed at 1.3685 against the US dollar ahead of the Bank of Canada's own rate decision, also due later.

The yen held near the 160 level, trading at 159.63 per dollar, after the Bank of Japan kept rates steady on Tuesday but signalled a strong likelihood of a hike in the coming months. The Australian dollar fell 0.26 percent to $0.7164 after inflation data showed ongoing price pressures, though a trimmed mean measure of core inflation came in slightly below forecasts. The New Zealand dollar dropped 0.4 percent to $0.5862.