Dollar creeps higher as Fed's taper looms

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The dollar began the week firmly on Monday with investors in a cautious mood ahead of several central bank meetings, headlined by the Federal Reserve, while looming catastrophe at indebted developer China Evergrande added to markets' fragility.

In thin trade, owing to holidays in Japan and China, the euro nursed losses from its weakest week in a month, slipping slightly to touch a four-week low of $1.1721.

The week brings central banks in Japan, the UK, Switzerland, Sweden, Norway, Indonesia, the Philippines, Taiwan, Brazil, South Africa, Turkey and Hungary as well as elections in Canada and Germany -- though traders are mostly focused on the Fed. It would only take two Fed members to change their minds for the "dot plot" of median projections to reflect hikes next year, said Marshall Gittler of brokerage BDSwiss.

 

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