News: FOREX-Dollar mixed ahead of Fed's interest rate decision

• Traders wait clues from Fed on U.S. rate hike path
• Euro stuck below $1.18 ahead of Thursday's ECB meeting
• Sterling gives up gains after Tuesday's Brexit vote boost

(Updates market action, changes dateline, previous LONDON)

The dollar was weaker against the euro but rose against some emerging market currencies and hit a three-week high against the yen on Wednesday as investors braced for what is expected to be the Federal Reserve's second interest rate increase of 2018.

The euro gained ground on the greenback amid expectations that the European Central Bank on Thursday would signal its intention to taper its 2.55 trillion euro ($3 trillion) bond purchasing program later in 2018.

Some emerging market currencies weakened versus the dollar on the possibility of a Fed rate hike, while others rose. Countries like Turkey TRY= with large external financing needs are particularly vulnerable to rising dollar-funding costs.

The U.S. central bank is due to release its latest policy statement at 2 p.m. EDT (1800 GMT), followed by a press conference half an hour later by Fed Chairman Jerome Powell.

The Fed is expected to raise its benchmark overnight lending rate by a quarter of a percentage point to a range of 1.75 percent to 2.00 percent. Investors will scour the statement for clues as to whether the Fed will raise rates once or twice more in the second half of 2018.

"If they paint a picture of stronger inflation and growth, the market would take that as dollar-positive," said Richard Scalone, co-head of foreign exchange at TJM Brokerage in Chicago.

At 10:17 a.m. (1417 GMT), the dollar was flat at 110.39 yen JPY= after earlier hitting a three-week high at 110.71 yen.

The euro was up 0.25 percent at $1.1770 EUR= and was 0.36 percent stronger at 129.96 yen EURJPY= .

Among emerging market currencies, the Turkish lira TRY= was down 1 percent at 4.646 lira per dollar, while South Africa's rand ZAR= firmed 0.2 percent to 13.300 rand per dollar.

The British pound dipped to a one-week low of $1.3309 GBP=D3 , unable to hold gains made on Tuesday when it briefly rose to $1.3424 after British Prime Minister Theresa May saw off a parliamentary rebellion over amendments to a bill for the country's exit from the European Union next year.

Slower-than-expected British inflation data on Wednesday also hurt the pound, as it weakened the case for a Bank of England rate rise in August.

The Canadian dollar, which has fallen heavily in recent weeks on concerns an escalating trade dispute with the United States would hit Canada's economy hard, rebounded nearly 0.2 percent to C$1.2992 CAD=D4 , above what was nearly a three-month low of C$1.3068 set last week.

The Norwegian crown rallied for a second straight session against the dollar NOK= and the euro EURNOK= , hitting its strongest level against the single currency since late October after an upbeat central bank survey raised expectations of tighter monetary policy.

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	Currency bid prices at 10:21AM (1421 GMT) 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	  EUR=		$1.1772		$1.1743	 +0.25%		 -1.87%	  +1.1782	 +1.1731 
 Dollar/Yen	   JPY=		110.4100	   110.3600	+0.05%		 -2.01%	  +110.7100   +110.3600 
 Euro/Yen		 EURJPY=	 129.97		 129.62	  +0.27%		 -3.85%	  +130.1300   +129.6200 
 Dollar/Swiss	 CHF=		0.9850		 0.9866	  -0.16%		 +1.10%	  +0.9895	 +0.9848 
 Sterling/Dollar  GBP=		1.3358		 1.3370	  -0.09%		 -1.14%	  +1.3376	 +1.3310 
 Dollar/Canadian  CAD=		1.2985		 1.3013	  -0.22%		 +3.24%	  +1.3046	 +1.2983 
 Australian/Doll  AUD=		0.7584		 0.7571	  +0.17%		 -2.78%	  +0.7593	 +0.7556 
 ar																							  

 Euro/Swiss	   EURCHF=	 1.1599		 1.1587	  +0.10%		 -0.77%	  +1.1622	 +1.1587 
 Euro/Sterling	EURGBP=	 0.8811		 0.8781	  +0.34%		 -0.81%	  +0.8826	 +0.8780 
 NZ Dollar/Dolar  NZD=		0.7038		 0.7005	  +0.47%		 -0.68%	  +0.7049	 +0.6996 
 Dollar/Norway	NOK=		8.0210		 8.0496	  -0.36%		 -2.27%	  +8.0583	 +8.0108 
 Euro/Norway	  EURNOK=	 9.4436		 9.4575	  -0.15%		 -4.11%	  +9.4606	 +9.4250 
 Dollar/Sweden	SEK=		8.6214		 8.6427	  -0.02%		 +5.12%	  +8.6538	 +8.6018 
 Euro/Sweden	  EURSEK=	 10.1507		10.1526	 -0.02%		 +3.17%	  +10.1582	+10.1220 
($1 = 0.8497 euros) 

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World FX rates in 2018	http://tmsnrt.rs/2egbfVh 

DXY and CFTC Positions http//reut.rs/2yam99i

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