NEW YORK (Reuters) – The safe-haven yen and Swiss franc on Tuesday gained for a second straight day this week as U.S. stocks stumbled a day after a blistering rally that propelled the tech-heavy Nasdaq to an all-time high.

The yen rose to one-week highs against the dollar, while the Swiss franc climbed to its highest in more than two months versus the greenback.

Japanese investors have also sold the dollar as they positioned for the likelihood that the Federal Reserve will take steps to flatten the Treasury yield curve, which has steepened as rates on the long end rose.

U.S. stocks opened lower as investors cautiously looked ahead to the Fed statement on monetary policy on Wednesday. .N The Nasdaq later reversed losses.

“Despite the historic rally in the stock market, there’s a an enormous amount of risk out there to the outlook,” said Edward Moya, senior market analyst, at OANDA in New York.

“As the economy reopens fully, there’s going to be a surge, but I don’t think that’s going to be long lasting. There are concerns that risk assets are near their peak and we’re probably going to see a little period of consolidation,” he added.

In late morning trading, the dollar fell 0.5% against the yen to 107.84 yen JPY=EBS, after earlier touching a one-week low of 107.67 yen.

Against the Swiss franc, the dollar dropped 0.8% to 0.9498 franc CHF=EBS, after earlier plunging to 0.9496, the lowest since late March.

The euro recovered early losses to trade up 0.4% to $1.1340 EUR=EBS.

The U.S. dollar index fell 0.3% to 96.314 =USD.

Investors are looking ahead to Wednesday’s Fed announcement following a two-day meeting. Speculation is growing that the U.S. central bank might adopt yield targets on bonds, or some other measures to anchor long-term yields.

Also on Tuesday, commodity currencies reversed their gains against the U.S. dollar.

The Australian dollar AUD=D3 was last down 0.8% at US$0.6964. Earlier in the Asian trading session, it rose to an 11-month high of US$0.7043. The New Zealand dollar NZD=D4 fell 0.5% to US$0.6522, off the four-and-a-half-month high touched earlier. “All the things that have done exceptionally well since March 23 when the Fed made all financial markets rise again are in reversal today, and the one currency that has gone down against the dollar since then was the yen,” and now the yen is reversing, said Kit Juckes, macro strategist at Societe Generale.

“We’ve had two and a half months of rocking risk-on that’s taken equities market further than anybody would have expected and we’re having a big co-ordinated joined-up pause ahead of the Fed meeting,” Juckes said.

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