March 20, 2018 / 2:06 PM / a month ago

FOREX-Dollar broadly higher ahead of Fed meeting

    * Traders await fresh clues from Fed on U.S. rates, economy
    * Euro slips on weak German investor confidence data 
    * UK inflation figures pressure sterling
    * Yen retreats vs dollar after remarks from BOJ's Amamiya 

 (Updates market action; changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, March 20 (Reuters) - The dollar rose broadly on
Tuesday, hitting a one-week high against the yen, as investors
awaited clues from the Federal Reserve on its outlook for the
U.S. economy and how many interest rate increases it may embark
on in 2018.
    The futures market implied traders widely expected Fed
policymakers would raise key borrowing costs by a quarter point
to a target range of 1.50 percent to 1.75 percent at a two-day
meeting, which will begin later on Tuesday.
    Investors will watch for new quarterly forecasts from Fed
officials due at 2 p.m. (1800 GMT) on Wednesday, followed by a
press conference from Jerome Powell, his first as Fed chief.
    "The dollar remains in wait-and-see mode ahead of tomorrow's
FOMC meeting, with everyone awaiting the reveal of the dot plot
and the tone of the presser," said Boris Schlossberg, managing
director of FX strategy at BK Asset Management in New York.
    An index tracking the greenback versus a basket of
six currencies rose 0.488 points, or 0.54 percent, to 90.253. It
was within striking distance of a nearly two-week peak of 90.378
hit on Friday.
    The dollar rebounded from Monday's losses against the yen
following comments from Masayoshi Amamiya, one of the two new
deputy governors at the Bank of Japan. 
    Amamiya told reporters earlier on Tuesday there is a need to
stick with an easy monetary policy to support the economy.

    The greenback was last up 0.31 percent at 106.41 yen
after touching a nearly one-week peak at 106.60 yen.
    The euro retreated on a sharp drop in confidence among
German investors in March according to a ZEW research institute
survey. 
    On Monday, the single currency had strengthened on a Reuters
report that European Central Bank officials were shifting their
debate from bond purchases to the expected path of interest
rates, reviving bets that the ECB may raise rates sooner than
previously thought.
    The euro was last down 0.49 percent at $1.2273.
    Sterling eased as weaker-than-forecast British
inflation figures supported the view the Bank of England will
likely leave rates unchanged for the foreseeable future.

    The pound was last down 0.21 percent at $1.3995. It had
risen to its highest level versus the greenback in more than a
month on Monday as Britain and the European Union appeared to
reach a broad agreement on a post-Brexit transition period and
the Irish border.
========================================================
    Currency bid prices at 9:42AM (1342 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.2274        $1.2333     -0.48%         +2.32%      +1.2354     +1.2272
 Dollar/Yen       JPY=        106.4100       106.0800    +0.31%         -5.56%      +106.6000   +105.9300
 Euro/Yen         EURJPY=     130.62         130.87      -0.19%         -3.37%      +131.6900   +130.5600
 Dollar/Swiss     CHF=        0.9550         0.9509      +0.43%         -1.98%      +0.9553     +0.9503
 Sterling/Dollar  GBP=        1.3994         1.4023      -0.21%         +3.57%      +1.4066     +1.3987
 Dollar/Canadian  CAD=        1.3065         1.3075      -0.08%         +3.88%      +1.3087     +1.3053
 Australian/Doll  AUD=        0.7706         0.7717      -0.14%         -1.22%      +0.7721     +0.7694
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1720         1.1731      -0.09%         +0.27%      +1.1749     +1.1717
 Euro/Sterling    EURGBP=     0.8767         0.8794      -0.31%         -1.31%      +0.8799     +0.8765
 NZ Dollar/Dolar  NZD=        0.7205         0.7242      -0.51%         +1.68%      +0.7248     +0.7202
 Dollar/Norway    NOK=        7.7243         7.7219      +0.03%         -5.88%      +7.7312     +7.6971
 Euro/Norway      EURNOK=     9.4822         9.5270      -0.47%         -3.72%      +9.5316     +9.4830
 Dollar/Sweden    SEK=        8.1889         8.1680      -0.26%         -0.16%      +8.1959     +8.1605
 Euro/Sweden      EURSEK=     10.0511        10.0769     -0.26%         +2.15%      +10.0890    +10.0520
 
    
 (Additional reporting by Saikat Chatterjee in LONDON
Masayuki Kitano in TOKYO
Editing by Keith Weir and Meredith Mazzilli)
  
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