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Dollar steady against euro before interest rate moves


LONDON, Oct 31 (AFP): The dollar steadied against the euro Monday as the market awaited US and eurozone interest rate decisions later this week.
The euro stood at 1.2068 dollars in early European trading, unchanged from late on Friday in New York.
The dollar edged up to 115.84 yen from 115.66 yen Friday.
Traders widely expected the Federal Open Market Committee to increase US interest rates by a further quarter of a per centage point to 4.00 per cent when it meets Tuesday.
WestLB currency strategist Michael Klawitter said: "Prospects of FOMC sticking to 'measured pace' could give the dollar some tailwind."
The US currency ended last week on an upbeat note after data showed that the US economy expanded at a better-than-expected annual rate of 3.8 per cent in the third quarter.
The FOMC raised its key Fed funds rate by 25 basis points for the eleventh time in a row last month to 3.75 per cent, and indicated that the US economy was on a steady growth track despite the impact of Hurricane Katrina, while cautioning about the outlook for inflation.
The European Central Bank meets Thursday to decide over the cost of borrowing across the eurozone. The ECB has held its central "refi" refinancing rate steady at 2.0 per cent since June 2003.