The dollar is dropping as U.S. Federal Reserve policymakers are meeting.

UBS analyst Chris Walker says that given the recent fears that the chance of a recession has increased, investor expectations have grown that there could be a significant policy announcement from the Fed. He says UBS economists don’t expect a big rescue effort, however.

The Fed has previously earmarked extra funds for buying up bonds, a strategy known as “quantitative easing.” That adds money to financial markets and keeps interest rates low to support lending. But it also tends to weigh on a currency.

In morning trading Tuesday in New York, the euro rose to $1.4250 from $1.4190. The dollar fell to 77.23 Japanese yen from 77.70 yen.