Dollar languished near one-month low against a basket of major currencies on Friday, suffered a setback overnight traders worried that the Fed's policy meeting next week is more dovish.
Traders said the dollar slippery slope settings, is the Wall Street Journal report that the Federal Reserve may alter its forward guidance to help hammer home the message that it will keep interest rates low for a long period of time to debate.
"The article caused a sensation, triggering another wave of long dollar positions liquidated. Federal Reserve's meeting has been seen as a non-event, but now it is becoming a major focus," said Kyosuke Suzuki, Societe Generale Societe Generale Bank in Tokyo foreign exchange supervisor.
The dollar index DXY slightly easier to 81.681, down more than 0.6 percent on Thursday 21 January lows 81.624,6 a level not seen since.
Autumn effectively terminate the dollar rebounded on Wednesday tentatively, and put it in a downtrend, beginning July 10, the Fed June meeting to give investors a second thought, when banks began to reduce irritation.
The next major support is seen at 81.50, it has its 200-day moving average, and 76.4% retracement of the rally from early June to July. At the end of the Fed's quantitative easing policy, driven by expectations of a rebound.
Back pressure on the dollar, euro jump as $ 1.3296 seen, on June 20 the last time I saw high. Last stand at $ 1.3280, the day is almost flat.
, The dollar fell 0.6 percent against the yen to 98.64, at some stage, had hit two-week low 98.615.
There are struggling to stay above the strong support around 98.75, it has its 90-day moving average and the Ichimoku cloud top, possibly under the leadership test July 11 low of $ 98.20.
Euro against the dollar also lost ground on the Japanese currency position, slipping 0.5 percent to 131.08 yen in, and pull away from a two-month high of 132.74 set last Wednesday.
Traders agreed that the dollar's short-term prospects depend on a two-day Federal Reserve policy meeting end date (Wednesday), and the U.S. employment data on Friday next week.
"It seems the Fed raises interest rates next bar. Kitakura Katsunori, associate general manager of marketing, said," For now, the dollar is likely in its recent trading range until there is a clear signal from the Fed Sumitomo Mitsui Trust Bank in Tokyo unit.
In the third quarter, dollar bulls think the case for the U.S. dollar remains strong, the Fed is expected to begin tapering asset purchase program later this year, or take months.
However, many of them in the past few weeks, the dollar weakness disappointed.
"I think a lot of people who have rushed to the view that the dollar will strengthen the dollar by the end of the long-term position has been forced to abandon their bet it, if the market is suffering from neurasthenia," said a European bank in Tokyo trader.
New Zealand's currency is an excellent performer in Thursday rose 1.1 percent against the dollar to $ 0.8105, the highest in six weeks. Last traded at $ 0.8094, 0.4% higher than its late U.S. levels.
Investors warmer kiwi, after the Reserve Bank of New Zealand, somewhat surprised last Thursday, a slightly stronger statement, although it pledged to keep interest rates at a record low of 2.5% by the end.
Kiwi also hit against the Australian dollar, fell as low as NZ1.1388 U.S. dollar on Thursday, the highest level in nearly five years. Last traded currency pairs in 1.1453, down nearly 10%, and its March peak of 1.2681.
 



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