U.S. dollar gains ahead of Fed; Swedish crown falls after hike



* Sweden's central bank hikes rates by 100 bps

* U.S. rate hike in focus as Fed starts meeting on Tuesday

* BOE, BOJ to make rate policy decisions on Thursday

By Alun John and Gertrude Chavez-Dreyfuss

LONDON/NEW YORK, Sept 20 (Reuters) - The dollar rose on Tuesday, trading near a two-decade high, as investors held firm on expectation of another aggressive rate hike by the Federal Reserve, the centerpiece of a week packed with central bank meetings.

The Fed starts a two-day meeting on Tuesday, with rate futures traders pricing in an 81% chance of a 75 basis point hike and a 19% probability of a 100 bps of tightening. FEDWATCH

The dollar index was on track for its fifth weekly gain in six and was last up 0.5% at 110.04 =USD . It's not far from 110.79, a level hit earlier this month for the first time since June 2002.

"Traders and investors are taking cover, aware that the dollar is behaving like a force of nature, and unwilling to face its wrath," said Karl Schamotta, chief market strategist, at Corpay in Toronto.

"This means that - with nothing to slow it down between now and Wednesday, the greenback is likely to follow Newton's first law: an object in motion will stay in motion until acted on by an external force."

The market was also rocked on Tuesday by Sweden's central bank, which raised rates by a full percentage point. The rate hike by the Riksbank was larger than analysts had expected, causing the Swedish crown to briefly spike against the euro and dollar.

It failed to hold onto that strength. The euro extended recent gains, climbing to a fresh six-month top of 10.8590 crowns. The euro was last up 0.6% at 10.8643 EURSEK=D3 . The dollar also climbed 0.6% to 10.8764 crowns. SEK=D3

"In a way, this was an attempt by the Riksbank to lift the krona, but it failed, and it's not surprising," said Francesco Pesole, currency strategist at ING.

He said the relationship between European currencies and central bank policies had been breaking down as markets increasingly traded on the energy and growth outlook for Europe instead.

Providing additional support to the dollar, the U.S. two-year Treasury yield US2YT=RR , which is sensitive to rate policy expectations, rose as high as 3.992%, its highest since November 2007.

The euro EUR=EBS slid 0.4% to $0.9981, after dropping as low as $0.9864 on Sept. 6 for the first time in two decades, while beaten-down sterling GBP=D3 was down 0.2% at $1.1402.

The Bank of England will decide policy on Thursday, and investors are split over whether a 50 or 75 basis point hike is on the way.

The Bank of Japan also meets this week but is widely expected to keep its ultra-easy stimulus settings unchanged -- including pinning the 10-year yield near zero -- to support a fragile economic recovery.

The yen has taken a kicking due to this policy and the dollar was last up 0.4% on the Japanese currency at 143.78, continuing a week-long consolidation after climbing as high as 144.99 on Sept. 7 for the first time in 24 years.

The dollar-yen currency pair tends to track the long-term yield spread between U.S. and Japanese government bonds, and so was little affected by data that showed inflation was hot, at least by Japanese terms.

========================================================

Currency bid prices at 10:39 AM (1439 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

110.1300

109.5400

+0.56%

15.123%

+110.2600 +109.3500 Euro/Dollar

EUR=EBS

$0.9977

$1.0025

-0.48%

-12.24%

+$1.0051

+$0.9956 Dollar/Yen

JPY=EBS

143.8350

143.2000

+0.45%

+24.96%

+143.9150 +142.9350 Euro/Yen

EURJPY=

143.50

143.52

-0.01%

+10.13%

+144.0300 +143.0300 Dollar/Swiss

CHF=EBS

0.9671

0.9647

+0.21%

+5.98%

+0.9682

+0.9624 Sterling/Dollar GBP=D3

$1.1393

$1.1434

-0.35%

-15.75%

+$1.1460

+$1.1383 Dollar/Canadian CAD=D3

1.3352

1.3251

+0.77%

+5.61%

+1.3353

+1.3228 Aussie/Dollar

AUD=D3

$0.6685

$0.6727

-0.62%

-8.03%

+$0.6747

+$0.6685 Euro/Swiss

EURCHF=

0.9647

0.9667

-0.21%

-6.96%

+0.9682

+0.9631 Euro/Sterling

EURGBP=

0.8756

0.8765

-0.10%

+4.24%

+0.8784

+0.8725 NZ

NZD=D3

$0.5891

$0.5957

-1.05%

-13.88%

+$0.5975

+$0.5887 Dollar/Dollar

Dollar/Norway

NOK=D3

10.3280

10.2285

+0.93%

+17.19%

+10.3305

+10.2035 Euro/Norway

EURNOK=

10.3056

10.2043

+0.99%

+2.88%

+10.3079

+10.2296 Dollar/Sweden

SEK=

10.8905

10.7623

+0.61%

+20.77%

+10.8979

+10.6828 Euro/Sweden

EURSEK=

10.8610

10.7955

+0.61%

+6.13%

+10.8689

+10.7572



GRAPHIC-World FX rates Link
GRAPHIC-Central banks ramp up fight against inflation Link



Reporting by Alun John in London and Gertrude Chavez-Dreyfuss in New York; Additional reporting by Kevin
Buckland in Tokyo; Editing by Chizu Nomiyama and Lisa Shumaker

Disclaimer: De entiteiten van de XM Group bieden diensten en toegang tot ons online handelsplatform op basis van uitsluitend-uitvoering, waardoor een persoon de beschikbare content op of via de website kan bekijken en/of gebruiken, zonder dat dit is bedoeld voor wijziging of uitbreiding. Dergelijk(e) toegang en gebruik vallen onder: (i) de algemene voorwaarden; (ii) risicowaarschuwingen; en de (iii) volledige disclaimer. Dergelijke content wordt daarom alleen aangeboden als algemene informatie. Wees u er daarnaast vooral van bewust dat de inhoud op ons online handelsplatform geen verzoek of aanbieding omvat om transacties op de financiële markten uit te voeren. Het beleggen op welke financiële markt dan ook vormt een aanzienlijk risico voor uw vermogen.

Alle materialen die op ons online handelsplatform worden gepubliceerd zijn bedoeld voor educatieve/informatieve doeleinden en omvatten geen – en moeten niet worden beschouwd als het bevatten van – financieel, vermogensbelastings- of handelsadvies en aanbevelingen, of een overzicht van onze handelsprijzen, of een aanbod of aanvraag van een transactie in financiële instrumenten of ongevraagde financiële promoties voor u.

Alle content van derden, alsmede content die is voorbereid door XM, zoals opinies, nieuws, onderzoeken, analyses, prijzen en andere informatie of koppelingen naar externe websites op deze website worden aangeboden op een 'zoals-ze-zijn'-basis, als algemene marktcommentaren, en vormen geen beleggingsadvies. Voor zover dat content wordt beschouwd als beleggingsonderzoek, moet u zich ervan bewust zijn en accepteren dat de content niet bedoeld was en niet is voorbereid in overeenstemming met de wettelijke vereisten die zijn opgesteld om de onafhankelijkheid van beleggingsonderzoek te bevorderen en als zodanig onder de geldende wetgeving en richtlijnen moet worden beschouwd als marketingcommunicatie. Zorg ervoor dat u onze Mededeling over niet-onafhankelijk beleggingsonderzoek en risicowaarschuwing in verband met de voorgaande informatie doorneemt en begrijpt; die kunt u hier lezen.

We gebruiken cookies om u de beste ervaring op onze website te bieden. Meer lezen of wijzig uw cookie-instellingen.

Risicowaarschuwing: Uw vermogen loopt risico. Hefboomproducten zijn mogelijk niet voor iedereen geschikt. Lees onze informatie over risico's.