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FOREX-Dollar edgy after slumping on U.S. election jitters

Published 03/11/2016, 11:20 am
© Reuters.  FOREX-Dollar edgy after slumping on U.S. election jitters
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* Fed stays the course, but offers no reason to raise hike bets

* Tokyo closed for public holiday on Thursday

TOKYO, Nov 3 (Reuters) - The dollar nursed its losses on Thursday as deepening concerns about next week's contentions U.S. presidential election overshadowed the Federal Reserve's latest review where policy makers signalled they were on track to hike rates next month.

The dollar edged up against yen with markets in Japan closed for a public holiday, after skidding as much as 1 percent overnight to its lowest since Oct. 10. It was last up 0.1 percent at 103.37 yen JPY= , inching away from its Wednesday low of 102.99 and well off its Oct. 28 high of 105.53.

While Democratic candidate Hillary Clinton, seen as the status quo candidate for markets, remained ahead in many polls before Tuesday's vote, some investors have begun pricing in the possibility of victory for her Republican rival Donald Trump

An average of polls compiled by the RealClearPolitics website showed Clinton just 1.7 percent ahead of Trump nationally on Wednesday, with 47 percent support to his 45.3 percent. But a Reuters/Ipsos daily tracking poll released on the same day showed Clinton ahead by 6 percentage points among likely voters. Federal Reserve kept interest rates unchanged as widely expected in its last policy decision before the Nov. 8 vote, and signalled it could hike rates in December as the economy gathers momentum and inflation picks up. were pricing in a 72 percent likelihood that the Fed will raise rates in December, according to the CME Group's FedWatch Tool.

"The U.S. dollar traded slightly higher after the FOMC meeting but the Federal Reserve failed to impress so the greenback still remains under pressure and risk of further losses," wrote Kathy Lien, managing director at BK Asset Management.

"The central bank said the case for a rate hike continued to strengthen and that inflation increased somewhat since earlier this year, but they want to wait for further evidence before raising interest rates," she said.

Some evidence could come as early as Friday, when the key nonfarm payrolls report will be released. Employers are expected to have added 175,000 jobs in October, according to the median estimate of 106 economists polled by Reuters. ECONUS

The euro EUR= was steady at $1.1094 after rising 0.6 as high as $1.1123 on Wednesday, its loftiest peak since Oct. 11.

The dollar was nearly flat against the Swiss franc CHF= at 0.9727 franc, after falling as low as to 0.9691 on Wednesday, its lowest level since Oct. 3.

The dollar index .DXY , which tracks the greenback against a basket of six major currencies, last traded at 97.409 after dropping as low as 97.178 on Wednesday, its lowest since Oct. 11.

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