* Praet says Draghi comments nothing new * Dollar quiet ahead of two-day Fed meeting; rate hike expected * Major currencies shrug off latest trade war tariffs * Graphic: World FX rates in 2018 tmsnrt.rs/2egbfVh (Recasts, adds comment, FX table, updates prices, changes byline, dateline; previous LONDON) By Gertrude Chavez-Dreyfuss NEW YORK, Sept 25 (Reuters) - The dollar was weaker on Tuesday ahead of a Federal Reserve meeting that is widely expected to end with an interest rate hike, as investors already have priced in two more rate increases this year and some in 2019, leaving little room for further currency gains. The Fed kicks off its two-day meeting later in the session, with market participants focused on the U.S. central bank's view on the economy as well as its guidance on future tightening. The Fed already has raised rates twice in 2018. The dollar has benefited from a hawkish rate outlook all year, but has lost steam the last few weeks, as other economies such as the euro zone improved, keeping them closer to a shift to tighter monetary policy. Since mid-August, the dollar has declined 3.1 percent against a basket of currencies. "The U.S. dollar appears vulnerable heading into Wednesday's Fed, given extended speculative bullish positioning against most of the G10 currencies and considerable tightening already reflected in fed funds futures," said Eric Theoret, currency strategist at Scotiabank in Toronto. He added that a December hike was priced around 80 percent, with roughly 50 basis points of tightening reflected for 2019. In mid-morning trading, the dollar index was down 0.1 percent, at 94.051. The euro, on the other hand, rose despite a European Central Bank official downplaying on Tuesday its president Mario Draghi's comments a day earlier about "relatively vigorous" inflation. Some analysts said the euro was also supported by signs Italy's anti-establishment coalition is likely to reach a compromise over its 2019 budget. The euro was last up 0.4 percent at $1.1789. It had touched a 3-1/2 month high on Monday after Draghi expressed confidence in euro zone inflation and wage growth, before giving up most of those gains. But the ECB's chief economist Peter Praet said on Tuesday there was nothing new in Draghi's comments. The single currency managed to find strength. Most analysts have interpreted Draghi's speech as hawkish - euro zone money markets brought forward their expectations for a 10 basis point ECB rate hike to September from October 2019 - helping to underpin the single currency. Against the yen, however, the dollar was up slightly at 112.86 yen after minutes from the Japanese central bank's July policy meeting showed that a few board members said the Bank of Japan must consider more seriously the potential dangers of ultra-easy policy. Overall, the broader currency market was largely quiet on Tuesday as the latest round of tariffs in the U.S.-China trade conflict kept investors on edge. "There is a general lack of impulses. The market is not reacting (to the trade war) because we are not seeing any economic impact. The other big driver (of currencies) is usually monetary policy but the FOMC is going to be a non-event," Thu Lan Nguyen, a strategist at Commerzbank in Frankfurt said, referring to the Federal Open Market Committee. ======================================================== Currency bid prices at 10:19AM (1419 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1790 $1.1746 +0.37% -1.74% +1.1792 +1.1732 Dollar/Yen JPY= 112.8700 112.7900 +0.07% +0.17% +112.9600 +112.7500 Euro/Yen EURJPY= 133.06 132.51 +0.42% -1.57% +133.1000 +132.3800 Dollar/Swiss CHF= 0.9651 0.9646 +0.05% -0.94% +0.9671 +0.9642 Sterling/Dollar GBP= 1.3161 1.3119 +0.32% -2.60% +1.3171 +1.3096 Dollar/Canadian CAD= 1.2949 1.2955 -0.05% +2.96% +1.2972 +1.2936 Australian/Doll AUD= 0.7255 0.7252 +0.04% -7.00% +0.7263 +0.7237 ar Euro/Swiss EURCHF= 1.1377 1.1334 +0.38% -2.67% +1.1380 +1.1327 Euro/Sterling EURGBP= 0.8956 0.8952 +0.04% +0.82% +0.8975 +0.8939 NZ NZD= 0.6652 0.6643 +0.14% -6.12% +0.6658 +0.6631 Dollar/Dollar Dollar/Norway NOK= 8.1095 8.1402 -0.38% -1.18% +8.1509 +8.1086 Euro/Norway EURNOK= 9.5614 9.5629 -0.02% -2.92% +9.5787 +9.5558 Dollar/Sweden SEK= 8.7940 8.7977 +0.32% +7.22% +8.8071 +8.7611 Euro/Sweden EURSEK= 10.3703 10.3369 +0.32% +5.40% +10.3717 +10.3118 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Tommy Wilkes in London; Editing by Andrea Ricci)