The U.S. dollar climbed against the yen for a second day Tuesday, as traders weigh in the possibility of an early exit to the Federal Reserve’s record monetary stimulus.

The two-day meeting of the Federal Open Market Committee (FOMC) ends tomorrow, and Bernanke will hold a press conference after the meeting. Some traders anticipate the Fed to signal the U.S. economy is almost reading to reduce in monthly bond purchases.

Economists believe Federal Reserve Chairman Ben Bernanke will try to soothe investor nerves after a two-day policy meeting ends on Wednesday and that explains the dollar`s rise against the yen.

Uncertainty about the Fed has led to a sell-off in global stocks in recent weeks, helping the safe-haven yen to its best weekly gain in nearly four years against the dollar last week.

A winding down of the central bank`s $85 billion-a-month bond purchase would boost the dollar, which has been hit by the Fed`s money-printing program over the past several years.

The dollar rose 1.0 percent to 95.197 yen having hit a two-month low of 93.784 yen on Thursday, and hit a high of $95.756 earlier today. Data as of 12:00 p.m. ET

The euro rose 1.5 percent to 128.028 yen, up from a low of 127.029, having earlier hit a high of 129.328

Since Japanese Prime Minister Shinzo Abe called late last year for radical monetary easing to revive the economy, dollar/yen has been driven higher by rises in Japanese share prices.

However, worries that China is slowing coupled with talk of the Fed withdrawing stimulus led to a stocks selloff and a sharp rise in volatility. This drove investors to the yen which tends to benefit in times of market turmoil.

The dollar briefly hit a session peak versus the yen, while the euro extended gains after data showed U.S. consumer prices rose in May and a gauge of underlying price pressures showed signs of stabilizing after a long decline, a potential comfort to Federal Reserve policymakers who would like to see stronger inflation.

The Euro rose 0.3 percent to $1.34040 against the dollar, having reached a four-month high of $1.34145 after ZEW data showed German analyst and investor sentiment rose in June.

U.S. stocks opened higher Tuesday after U.S. housing starts and consumer inflation rose below estimates last month as investors await the end of the Federal Open Market Committee meeting tomorrow.

The Dow Jones Industrial Average rose 0.39% or 59.12 points to 15238.13 points. The S&P 500 gained 0.24% or 4.00 points to 1642.99 points. The NASDAQ composite index climbed 0.33% or 11.39 points to 3463.50. As of 10:00 a.m. ET

The consumer price index for May increased a less than expected 0.1% on the month, while it rose 0.2% when excluding the food and energy components, which was in line with economists’ predictions.

May housing starts rose 6.8% to a seasonally adjusted annualize rate of 914,000. That was below expectations for a 11.4% rise to a seasonally adjusted annualized rate of 950,000. The number of new building permits.

Investor worries over whether the Fed intends to maintain or start winding down its asset-purchase program were highlighted in afternoon trading on Monday. The Dow pared an early gain of as much as 192 points down to about 42 points, before bouncing into the close, after news reports raised worries that the Fed may signal a tapering of asset purchases.

European markets seesawed around unchanged levels in muted trading as investors waited Bernanke, with the Stoxx Europe 600 last up 0.1%. Separately, European Central Bank President Mario Draghi said he would not hesitate to use interest rates and non-standard measures to bolster the euro-zone economy.

Front month July crude-oil futures rose 0.35% to $98.20 a barrel, while June gold futures lost 0.7% to $1,373.10 an ounce. The dollar gained ground against both the yen and the euro.

US CPI for May came in lower than projected at 0.1% from -0.4%; below the projected reading of 0.2% while that for the year ending May it came in as expected at 1.4% from 1.1% while that the Core CPI for May came in as projected at 0.2% from 0.1% and came in unchanged and as forecasted for the year ending May at 1.7%.