[NEW YORK] The US dollar dipped against the euro on Tuesday as the Federal Reserve opened its first monetary policy of 2016, a year marked so far by global market turmoil.
The Fed is not expected to announce any change in policy after the meeting Wednesday following its historic interest rate increase in December.
All eyes will be focused on the Federal Open Market Committee's policy statement for signs of whether the Fed will back away from its signal of four rate hikes this year.
Analysts also will be looking for clues of a change in FOMC views on persistently weak inflation, amid a continued fall in oil prices.
The dollar slipped to US$1.0868 per euro around 2200 GMT, down from US$1.0851 at the same time Monday.
"Key for the dollar will be the Fed's take on the market turmoil," said Joe Manimbo, analyst at Western Union Business Solutions.
"Have the global headwinds of slowing growth in China and sinking oil prices been strong enough to blow Fed plans to raise rates off course?" If the FOMC statement appears dovish, the dollar could come under pressure, he said.