The euro remained close to near-term lows against the dollar and yen as lower global stocks diminished risk appeal. Traders showed caution ahead of the U.S. interest rate decision tomorrow.

The Federal Open Market Committee's two-day policy meeting begins today, with a rate decision coming around 2:15 p.m. ET on Wednesday. Rates are expected to be left unchanged near zero for the foreseeable future, but traders will watch accompanying comments for clues on future moves.

Meanwhile, the Eurozone is expected to emerge from recession in the second half of 2009, the European Commission said in its Autumn forecast on Tuesday. However, the economy is set to contract 4% for 2009 as a whole. A gradual recovery is expected with GDP forecast to grow 0.7% in 2010 and around 1.5% in 2011, the Brussels-based commission added. The commission raised its forecast for 2010 from 0.1% fall.

The euro stabilized at a four-week low versus the dollar, moving near 1.4650. The European currency has been trending lower for about 10-days after hitting a 14-month high above $1.50.

A Commerce Department report showed that factory orders increased by 0.9 percent in September following an unrevised 0.8 percent decrease in August. The increase in orders came in slightly above economist estimates for an increase of about 0.8 percent.

The euro turned lower against the British pound, moving near 0.8950. The euro had been trending higher in recent days, attempting to move away from a 12-day low of 0.8934.

In the UK, the CIPS/Markit construction purchasing managers' index fell to 46.2 in October from 46.7 recorded in September, survey data released by the U.K.'s Markit Economics showed today. Economists had expected a reading of 47.2.

The euro recovered some of its early-morning losses against the yen, rising near 132.65 after earlier falling near 131.70. The European currency has been trending down for about a week and hit a 3 1/2-week low yesterday.