FOREX-Dollar slips ahead of Fed policy meeting

  • Euro falls briefly on Reuters report on ECB bond program
  • Trump's U.N. speech grabs attention but non-market event
  • Yen slips to 8-week low vs dollar, 21-month low against euro
  • Swiss franc hits lowest vs euro since Jan 2015

(Updates market action, changes dateline, previous LONDON)

The dollar weakened against a basket of currencies on Tuesday in advance of a Federal Reserve meeting where policymakers are expected to decide on the reduction of the central bank's $4.2 trillion worth of bond holdings.

The Fed's possible move to further roll back stimulus has not stemmed the greenback's weakness this year as other major central banks are considering steps to either slow their bond purchases or raise interest rates.

Analysts widely anticipate Fed policymakers to announce a lowering of monthly bond purchases starting in October when their two-day meeting ends on Wednesday. They expect Fed officials would leave the door open for a rate increase at their Dec. 12-13 meeting.

At 11:33 a.m. (1520 GMT), the index that tracks the dollar against six currencies .DXY was down 0.1 percent at 91.928, which was not far from the over 2-1/2 year low set on Sept. 8.

The dollar had weakened against yen ahead of U.S. President Donald Trump's speech before the United Nations General Assembly, which some traders feared would heighten tensions between Washington and North Korea over the latter's growing nuclear weapons program.

While Trump dealt harsh criticism against the North Korean regime, it was not enough to spook most investors.

The greenback was steady at 111.57 yen JPY= , below its eight-week peak of 111.87 set earlier Tuesday.

Meanwhile, traders have been speculating whether the European Central Bank is moving closer to wind down its 2.3 trillion euro asset purchase program.

ECB policymakers disagree whether to determine a fixed date to end the program when they meet in October, as the euro has jumped, Reuters reported.

The single currency fell briefly on the Reuters report. Earlier Tuesday, the yen hit a 21-month trough versus the euro EURJPY= , while the Swiss franc hit its lowest level against it since January 2015 EURCHF= .

The common currency reached a one-week high versus the greenback at $1.2005 EUR= .

========================================================  
    Currency bid prices at 11:34AM (1534 GMT)  
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid  
                                              Previous                   Change                   
                                              Session                                             
 Euro/Dollar      EUR=        $1.1969        $1.1952     +0.14%         +13.85%     +1.2005     +1.1951  
 Dollar/Yen       JPY=        111.5500       111.5600    -0.01%         -4.55%      +111.8700   +111.2100  
 Euro/Yen         EURJPY=     133.52         133.35      +0.13%         +8.43%      +134.1500   +133.2400  
 Dollar/Swiss     CHF=        0.9634         0.9613      +0.22%         -5.34%      +0.9646     +0.9596  
 Sterling/Dollar  GBP=        1.3515         1.3492      +0.17%         +9.56%      +1.3551     +1.3470  
 Dollar/Canadian  CAD=        1.2275         1.2288      -0.11%         -8.60%      +1.2308     +1.2262  
 Australian/Doll  AUD=        0.8002         0.7960      +0.53%         +10.91%     +0.8014     +0.7957  
 ar                                                                                               
 Euro/Swiss       EURCHF=     1.1532         1.1496      +0.31%         +7.60%      +1.1563     +1.1493  
 Euro/Sterling    EURGBP=     0.8853         0.8857      -0.05%         +3.93%      +0.8899     +0.8844  
 NZ               NZD=        0.7310         0.7263      +0.65%         +5.32%      +0.7317     +0.7257  
 Dollar/Dollar                                                                                    
 Dollar/Norway    NOK=        7.8137         7.8296      -0.20%         -9.53%      +7.8334     +7.7887  
 Euro/Norway      EURNOK=     9.3536         9.3626      -0.10%         +2.95%      +9.3660     +9.3374  
 Dollar/Sweden    SEK=        7.9661         7.9606      +0.20%         -12.53%     +7.9715     +7.9362  
 Euro/Sweden      EURSEK=     9.5350         9.5162      +0.20%         -0.47%      +9.5436     +9.5158  
   
      
      
All spots FX=   

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