Dollar steadies with Fed QE2 debate raging

Asian stocks hovered near a 28-month high on Tuesday and the dollar steadied after a steep decline, with debate about the outcome of the next Federal Reserve meeting clouding the near-term outlook.

After no major policy initiatives emerged from a Group of 20 finance ministers meeting over the weekend, investors had kept selling the dollar on expectations that further asset-buying from the Fed will lead to debasement of the U.S. currency. more