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CORRECTED-FOREX-Dollar steadies as halt in oil, equities slide provides traction

Published 15/12/2015, 03:13 pm
© Reuters.  CORRECTED-FOREX-Dollar steadies as halt in oil, equities slide provides traction
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(Corrects day when Fed meeting ends in second paragraph)

* Dollar halts slide vs euro and yen

* Dollar still nervous before expected Fed rate hike

* Sterling struggles against euro

By Shinichi Saoshiro

TOKYO, Dec 15 (Reuters) - The dollar was little changed against the yen and euro on Tuesday as crude oil and equity prices took a breather after a recent slide.

But the U.S. currency remained vulnerable to any surprise from a two-day policy-setting U.S. central bank meeting that ends on Wednesday. The Federal Reserve is widely expected to hike interest rates for the first time in almost a decade.

The dollar was flat at 121.04 yen JPY= , having pulled back from a 6-week low of 120.35 on Monday.

A week ago the greenback was trading higher, above 123 yen. Cautious traders have trimmed their dollar positions, awaiting clues on how the Fed might the pace for additional monetary tightening next year.

"Dollar long positions are being liquidated in the market at a faster pace than expected," said Junichi Ishikawa, market strategist at IG Securities in Tokyo.

"It could face additional pressure if U.S. Treasuries are bought back on relief that the Fed's rate hike cycle will be quite a slow one," he said.

The euro was little changed at $1.0993 EUR= , off a 6-week peak of $1.1048 overnight.

Elsewhere, the pound struggled on signs the British government may not get is way in talks with European partners before next year's vote on leaving the EU, which added to political anxiety.

The euro fetched 72.55 pence EURGBP=D4 after rising to a 7-week high of 73.01 overnight.

The Australian dollar stood little changed at $0.7248 AUD=D4 . It hit a 3-week low of $0.7160 on Monday, weighed down in part by the Chinese yuan's recent weakness.

U.S. crude CLc1 traded at $36.27 a barrel after brushing a near 7-year trough of $34.53 overnight. (Editing by Ryan Woo)

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