Dollar drops, with all eyes on Fed

0 Comments | AFP, January, 2008

LONDON (AFP) — The dollar dipped Wednesday against major currencies before another likely interest rate cut from the US Federal Reserve, analysts said.

In European trading, the euro climbed to 1.4780 dollars from 1.4774 dollars in New York late on Tuesday.

The dollar fell to 106.83 yen from 107.07 yen late on Tuesday.

The US central bank's Federal Open Market Committee (FOMC) delivers its latest rate decision at 1915 GMT. Prior to that, dealers will digest US economic growth data for the fourth quarter.

"So it will be all eyes on the Fed today (Wednesday) with the FOMC meeting expected to cut rates by another 50 basis points," said CIBC economist Audrey Childe-Freeman.

"After what came across to some as a panic 75-basis-point rate cut last...