Asian session: The yen and Swiss franc declined

The yen and Swiss franc declined against their major peers after Turkey’s central bank took steps to stem a selloff in the lira, reducing demand for haven assets. Turkey’s central bank raised the benchmark repo rate to 10 percent from 4.5 percent, according to a statement posted on its website. It said investors should now treat the repo rate as the main indicator, instead of the lending rate.

Japan’s currency weakened for a third day versus the dollar before the Federal Reserve ends a two-day meeting amid forecasts it will reduce stimulus that has devalued the greenback. The Federal Open Market Committee will reduce monthly asset purchases, now at $75 billion, by $10 billion at each meeting to end the stimulus program this year, according to the median forecasts of analysts in a Jan. 10 Bloomberg News survey.

The Australian and New Zealand dollars gained along with the currencies of South Africa and South Korea. New Zealand’s central bank decides policy tomorrow. Traders see 51 percent odds that the Reserve Bank of New Zealand will raise its benchmark lending rate from a record low 2.5 percent tomorrow, swaps data compiled by Bloomberg show.

EUR / USD: during the Asian session, the pair traded in the range of $ 1.3635-70

GBP / USD: during the Asian session, the pair traded in the range of $ 1.6560-85

USD / JPY: during the Asian session, the pair rose to Y103.25

There is a full calendar ahead Wednesday, with the standout feature set to be the FOMC's latest policy decision, expected at 1900GMT. At 071GMT, the German February GfK consumer confidence data will be released, with forecasts looking for an unchanged 7.6. At 0800GMT, Spain's Q4 flash GDP data will cross the wires, at the same time as the Spanish December retail sales index will be published. At 0900GMT, the EMU December M3 data will be released. Italy's January ISTAT business survey data will be released at the same time. German Chancellor Angela Merkel gives the annual government declaration before parliament, in Berlin, at 1000GMT. The Bank of Ireland will release its quarterly report at 1100GMT. At 1300GMT, EU Commission President Jose Manuel Barroso and Italian PM Enrico Letta brief press in Brussels. At 1315GMT, BOE Governor Mark Carney will deliver a speech in Scotland.