Yen Crumbles Near 40-Year Lows Ahead of Fed Decision

The Japanese yen traded around 163.7 per dollar on Wednesday, hovering near 40-year lows as investors await the Federal Reserve's latest policy decision.

The Fed is expected to leave interest rates unchanged, but markets continue to price in about a one-third chance of a 25-basis-point rate hike from the central bank.

Meanwhile, there's roughly an 80% probability assigned to a rate increase in September.

On the geopolitical front, the US military said it intercepted an Iranian attack targeting US troops across the Middle East, pushing oil prices higher and further weighing on the yen.