* Dollar regains a bit of composure, inches up vs euro and
* Currency market awaits Trump's news conference for
* Wait-and-see mood prevails before Trump, keeps market in
* Aussie, kiwi steady near 1-month highs
(Updates prices, adds details and quotes)
By Shinichi Saoshiro
TOKYO, Jan 11 The dollar edged higher against a
basket of major currencies on Wednesday ahead of a news
conference by U.S. President-elect Donald Trump in which he is
expected to spell out more about his plans for the economy.
The dollar index rose 0.2 percent to 102.18.
The dollar rally sparked by Trump's surprise victory in the
November election has shown signs of fading, as the index has
gone from a 14-year peak of 103.82 scaled on Jan. 3 to a low of
101.30 over the past week.
The euro was down 0.1 percent at $1.0545 after
brushing a 10-day high of $1.0628 overnight.
The dollar firmed 0.3 percent to 116.100 yen. It had
suffered two days of losses against the safe-haven Japanese
Currency pairs settled into a narrow range ahead of Trump's
news conference - his first since the election - which is due to
start at around 11:00 EST (1600 GMT) neared.
"I did not expect the Tokyo session to be this quiet," said
Masashi Murata, senior currency strategist at Brown Brothers
Harriman in Tokyo. "It reflects the level of caution prevailing
in the market before Trump's appearance."
Over the past two months, expectations that the Trump
administration would enact economic stimulus measures backed by
massive fiscal spending have taken Wall Street to record highs,
U.S. debt yields to levels unseen since 2014 and the dollar
index to the 14-year high.
Against that backdrop, financial markets are keen to see how
Trump will follow through on campaign pledges.
"The dollar is set to resume the Trump rally if he provides
specifics of stimulus measures, notably those related to tax
cuts, which appear achievable," said Junichi Ishikawa, senior FX
strategist at IG Securities in Tokyo.
"On the other hand, the market is also focused on potential
risk factors, like Trump taking a tough stance against China.
That could prompt the dollar to fall against the yen."
Elsewhere in the markets, sterling dipped 0.1 percent to
$1.2168 to inch back towards a two-month low of $1.2107
set overnight. Worries about the terms of Britain's departure
from the European Union have kept the currency under heavy
pressure this week.
The Australian dollar was flat at $0.7372 after
popping up to $0.7385 overnight, its highest since mid-December.
The U.S. dollar's stall this week and rise in iron ore and coal
prices have shored up the Aussie this week.
The New Zealand dollar held steady at $0.6987,
after touching a four-week high of $0.7048 on Tuesday.
(Reporting by Shinichi Saoshiro; Editing by Simon