Foreign exchange trading remained muted during Wednesday as dealers waited for key rate decisions by both the European Central Bank (ECB) and Bank of England (BoE).

The dollar slipped to ¥116.09 and $1.3178 against the euro, from ¥116.66 and $1.3125 previously, while sterling was valued at $1.9328 from $1.9334 previously.

The ECB rate is widely expected to be lifted from its current 3.50 per cent to 3.75 per cent, while the BoE is expected to leave rates unchanged at 5.25 per cent.   

"All in all, the price action has been very limited," ABN Amro strategist Greg Gibbs told the International Herald Tribune.

"The vast bulk of speculative and real money investors... remain sidelined in the currency markets ahead of the next major signals from policy-makers led by the BoE and ECB."

Some analysts have revised previous predictions of further rises in the euro-zone and will be waiting for the ECB's press conference for indications of future direction.