The dollar ceded some of its overnight gains on Wednesday while Asian stocks struggled as traders weighed the odds of a super-sized Federal Reserve interest rate cut later in the day. The U.S. currency dropped back sharply against the yen,

The Fed lowered its window for the benchmark policy rate by 50 basis points to 4.75%-5%, where traders had been leaning before the decision. The dollar first fell broadly, hitting a two-and-a-half-year low on sterling, but then recoiled sharply.

The dollar lost ground on September 18, while Asian stocks delivered mixed results ahead of the Federal Reserves upcoming interest rate decision. The yen gained after a strong U.S. retail sales report reduced