Dollar slips against the euro before U.S. Fed decisions

Against the Japanese currency, the dollar rose to 90.71 yen from 90.31 yen late on Tuesday.

Elsewhere, the price of gold leapt to a record peak of 1,095.40 dollars an ounce.

The U.S. Federal Reserve is widely expected to hold its key lending rate steady in a range of zero to 0.25 percent on Wednesday. The European Central Bank and Bank of England will announce policy decisions the following day.

In London on Wednesday, the euro was changing hands at 1.4758 dollars against 1.4728 dollars late on Tuesday, at 133.97 yen (133.03), 0.8954 pounds (0.8958) and 1.5113 Swiss francs (1.5104).

The dollar stood at 90.71 yen (90.31) and 1.0232 Swiss francs (1.0255).

The pound was at 1.6494 dollars (1.6439).

On the London Bullion Market, the price of gold rose to 1,091.34 dollars an ounce from 1,061 dollars an ounce late on Tuesday.

In regional Asian trade, the dollar declined to 1,180.90 South Korean won from 1,182.05 on Tuesday, to 1.3978 Singapore dollars from 1.3997 and to 9,547 Indonesian rupiah from 9,580. The greenback fell to 32.55 Taiwan dollars from 32.56, to 33.44 Thai baht from 33.47 and to 47.70 Philippine pesos from 48.00.

Most analysts expect no change in the level of interest rates in Europe, but markets will be watching closely to see what the central banks might have to say on the prospect for an eventual tightening of monetary policy.

"This evening's (Fed) meeting is the clear key event of the session," said analyst Jane Foley at online currency traders Forex.com.

"The market is generally expected to maintain its statement that the Fed will continue to keep rates low for an 'extended' period."

The foreign exchange market was also awaiting fresh clues on the economic outlook from the Fed, following news last week that the United States bounced out of a deep recession in the third quarter of 2009.

"Players are refraining from taking clear positions ahead of the FOMC (Federal Open Market Committee meeting)," added Yosuke Hosokawa, head of foreign exchange group at Chuo Mitsui Trust Bank.

"The chances of a change in rates are extremely slim as the U.S. economy is still struggling to recover from abnormal economic conditions," said Hosokawa.

"Market participants will look to see how positively the FOMC assesses the U.S. economy," he added.

On Friday, meanwhile, traders will turn their attention to key job figures in the United States.

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