* Market prices in more than 90 pct chance of Fed lifting
* Euro off recent highs as Dutch vote looms
* Sterling nurses losses after plumbing 2-month lows
TOKYO, March 15 The dollar was on tenterhooks in
Asian trading on Wednesday as investors waited anxiously to see
what clues the U.S. Federal Reserve would soon reveal on its
monetary policy outlook.
The U.S. central bank began its two-day monetary policy
meeting on Tuesday. With the futures market pricing in more than
a 90 percent chance that it would raise interest rates,
investors' main focus turned to what its statement would say
about the pace of hikes this year.
Against its Japanese counterpart, the greenback edged down
0.1 percent to 114.67, shy of last week's high of 115.51,
which was its highest level since Jan. 19 as expectations built
for the rate increase.
"I think the dollar might have trouble above the 115 level
today, with Japanese exporters still seeking to sell above it
ahead of the end of the Japanese fiscal year this month," said
Kaneo Ogino, director at foreign exchange research firm
Global-info Co in Tokyo.
"Of course, everyone is waiting for the Fed, so we're
expecting range-bound trading until we get some clear signals
about expectations for the rest of the year," he said.
U.S. inflation data overnight cemented rate hike
expectations. U.S. producer prices rose more than expected last
month, marking the most robust year-on-year gain in nearly five
Sterling nursed its losses after tumbling to an eight-week
low of $1.2110 in the previous session, amid worries
about a prolonged and painful process of the UK's exit from the
British Prime Minister Theresa May won parliamentary backing
on Monday to begin the process of leaving the EU and start two
years of talks that will shape the future of Britain and Europe,
as Scotland mulled a possible second independence referendum.
The euro edged up 0.1 percent to $1.0613 but remained
shy of its Monday high of $1.0714, its loftiest peak since early
February, as concerns about a Dutch vote offset market
speculation that the European Central Bank could be poised to
wind down its stimulus programme.
The Netherlands will vote on Wednesday in an election that
was seen as a test of anti-immigrant sentiment even before a
rift with Turkey at the weekend put immigration and nationalism
at the top of the political agenda.
(Reporting by Tokyo markets team; Editing by Richard Borsuk)