The Dollar remained mostly unchanged on Wednesday ahead of a Federal Reserve meeting to discuss policy in light of an unpredictable economy, while significant investors in Asia continued to sell off US assets.

News that the US and China are scheduled to hold talks on Saturday helped alleviate fears of a trade war, which has undermined investor confidence in the Dollar and US markets.

Fed Chair Jerome Powell was anticipated to state that more data is needed before making a decision on the next steps for the US central bank.

There seemed to be a slight slowdown in the global selling of Dollars since last week, a trend primarily driven by investors, especially in lower-yielding emerging markets, moving out of the currency or repatriating funds, Reuters reports.

The Dollar experienced a small “micro bounce” due to the upcoming trade talks, but overall pessimism about the US economy and the Dollar still persists, according to IG analyst Tony Sycamore.

“I don't think the theme of US Dollar weakness is going to change. There's also a lot of uncertainty from offshore investors as to whether they want to be overexposed or overweight US equities,” he said.

Earlier this week, a record surge in the Taiwan Dollar extended to other currencies in Asia, including the Singapore Dollar and the South Korean Won.

Indeed, the Taiwan Dollar has strengthened against the greenback since US President Donald Trump's 2^nd April announcement of extensive tariffs on trade partners. At the time of writing, it was down by 0.7%.

The Dollar index, measuring the currency against six major peers, fell by 0.1% on Wednesday, marking a fourth consecutive day of losses. Whereas the Euro remained steady at $1.1366.

The Fed is widely anticipated to keep its benchmark interest rates unchanged on Wednesday. Traders are betting the central bank will restart its easing cycle in July, though some economists believe that persistent high inflation will prevent any rate cuts this year.

Furthermore, US stock futures moved into positive territory after Washington officials announced that Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China's top economic official in Switzerland on Saturday. On Sunday, Trump suggested that some trade deals would be revealed this week.