FOREX-Dollar falls as Fed decision looms

* Dollar retreats from 1-month high vs basket, euro

* Focus on whether Fed will keep low rate pledge

* U.S. private employers shed 203,000 jobs in October (Adds quotes, updates prices; changes byline, changes dateline, previous LONDON)

By Wanfeng Zhou

NEW YORK, Nov 4 (Reuters) - The dollar fell against the euro and a basket of currencies on Wednesday as firmer equity and commodity prices stoked risk appetite and investors braced for a policy decision from the Federal Reserve.

The decision at about 2:15 p.m. (1915 GMT) is the key news for the day, with the focus on whether the Federal Open Market Committee will uphold its pledge to keep the Fed funds rate low for "an extended period" even as the economy shows signs of improving. [ID:nN02441229]

Given the unwinding of gains in higher-yielding assets in recent days, analysts said any indication U.S. interest rates will stay low would prompt investors to take on riskier investments such as stocks and commodity currencies, which may push the dollar lower.

"With FOMC due later today volatility in (currencies) could spike substantially if the Fed chooses to change its language," said Boris Schlossberg, director of currency research at GFT Forex in New York.

"For now however, risk trades continue to dominate on the broad market belief that (the Fed) will not change the key words 'extended period,'" he added.