The 13-nation euro fell to US$1.3794 in morning European trading, just slightly less than the US$$1.3798 it bought in New York late Monday.
The British pound dropped to US$2.0269 from US$2.0300. The dollar headed higher against the Japanese currency, rising to purchase 118.76 yen from 118.43 yen.
Markets were looking ahead to the Fed meeting for hints as to whether interest rates may be lowered amid fears of a slowdown.
Worries about the U.S. lending climate have badgered markets since last week, and investors are concerned that weakness in the U.S. subprime mortgage sector will spread to global credit markets.
The Fed has kept its benchmark interest rate steady at 5.25 percent for the past year, even as the Bank of England and the European Central Bank have increased their rates.
Higher interest rates, a weapon against inflation, can support a currency by offering investors better returns on investments denominated in that currency.
The USA does not have a picture of the strong Russia, and the Americans will never allow Russians become strong. Sanctions show how obvious the conflict is
Fearing that peace might break out with the two Koreas talking to each other, Washington instructed South Korean President to keep the message about anything but peace
The head of the British army, Nick Carter, said that Moscow was capable of taking "hostile actions" against the United Kingdom and NATO much earlier than expected