Dollar Weakens While Stocks Are Mixed Before Fed

The dollar resumed declines and Asian equities were mixed as investors sifted through earnings ahead of the U.S. Federal Reserve’s policy decision. Oil extended gains.

The MSCI Asia Pacific Index fluctuated near a 10-year high as stocks in Australia advanced while shares in Japan and China retreated. Oil crept toward $47 a barrel after Saudi Arabia promised deep cuts to crude exports next month to help ease a global glut.

Earnings season is ramping up ahead of the eagerly anticipated Fed policy decision on Wednesday. Data Monday in Europe cast doubt over the strength of the recovery and bond investors are reacting to a weak inflation outlook in the U.S. While the Fed is expected to keep rates on hold, traders are looking for comments that it could make on its balance-sheet reduction plan.

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