Global Stock Market News - Dollar Low In Asia

Dollar droops as equities come under pressure before Fed meeting

A bank clerk counting US dollar banknotes

The dollar was mostly lower in Asia on Tuesday, taking its cue from a broad move lower in regional equities and caution ahead of the U.S. Federal Reserve's two-day meeting that begins later in the session.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS skidded 0.7 percent, as China's key share indexes gave up more than 1 percent.

Adding to the risk-off mood, the U.S. Navy sent a destroyer within 12 nautical miles of artificial islands built by China in the South China Sea, in a challenge to Beijing's territorial claims there.

Frequently used as a China play because of Australia's significant trade with that country, the Aussie slipped about 0.1 percent to $0.7235 AUD=D4, and also shed about 0.6 percent on the 87.23 yen AUDJPY.

The greenback began the Asian session already on the back foot, after disappointing U.S. home sales data pushed down Treasury yields and prompted investors to pare bets that the Fed would opt to hike interest rates before year-end.

Data released on Monday showed new U.S. single-family home sales fell to near a one-year low in September after gaining for two straight months.

The disappointing figures backed expectations that the U.S. central bank will leave rates near zero on Wednesday, at the close of a two-day meeting beginning later in the session.

Against its Japanese counterpart, the dollar gave up about 0.4 percent to 120.58 yenJPY=, moving away from a 2-month high of 121.60 yen touched on Monday ahead of a Bank of Japan meeting on Friday.