Dollar Slips after Last Week's Gains

The dollar slipped against most major currencies on Monday, reversing some recent strong gains ahead of an expected U.S. interest rate cut by the Federal Reserve this week.

Markets are fully pricing in a 25 basis point easing from 4.50 percent from the Fed when it meets on Tuesday, but chances of a bigger move have fallen to one-in-five from around 50-50 a week ago.

In early New York trading, the euro was up 0.4 percent at $1.4717. It got a boost last week as comments by ECB President Jean-Claude Trichet left open the possibility of higher rates next year, and added to those gains on Friday despite a fairly solid U.S. payrolls number.

The dollar fell 0.3 percent against the Swiss franc to 1.1250 francs, while sterling rose 0.7 percent to $2.0452.

Dollar Slips after Last Week

12/10/2007 6:46:12 AM