FOREX-Dollar slips as stocks, gold and oil jump; Fed eyed
* Dollar dips from 1-month high vs currency basket, euro
* Focus on whether Fed will keep pledge to keep rates low
* U.S. service sector grew in October, but below forecast (Updates prices, adds analysts' quotes and background)
By Wanfeng Zhou
NEW YORK, Nov 4 (Reuters) - The dollar slipped against most major currencies on Wednesday as a rally in stocks and commodities eroded the greenback's safe-haven appeal and investors awaited a policy decision from the Federal Reserve.
The decision, expected at about 2:15 p.m. (1915 GMT), is the key news for the day. The focus will be on whether the policy-setting Federal Open Market Committee will uphold its pledge to keep the benchmark fed funds rate low for "an extended period" even as the economy shows signs of improving. See [ID:nN02441229]
Given the recent unwinding of gains in higher-yielding currencies such as the Australian dollar, analysts said any indication that U.S. interest rates will stay low would prompt investors to take on riskier investments. If that happens, that may push the dollar lower, analysts said.
"I'm not looking for the Fed to make any substantial changes," said Dan Cook, senior market analyst at IG Markets in Chicago. "We had really positive (gross domestic product) growth, but they also realize the employment situation. Continued...
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