US$ dips as market awaits Fed clues; A$ dives

London

THE US dollar inched down on Wednesday as investors waited for a statement from the US Federal Reserve, while the Australian dollar plunged almost 2 per cent after worse-than-expected inflation data.

The greenback, having risen to a three-week high against the yen late last week on talk that the Bank of Japan could ease policy further this week, was steady at 111.06 yen, with the BOJ due to release its statement just hours after the Fed.