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Euro edges up against dollar

The euro pushed slightly higher against the dollar on Monday (July 28) after last week's losses in a quiet forex market ahead of Wednesday's Federal Reserve meeting and its possible update of US rate plans.

NEW YORK: The euro pushed slightly higher against the dollar on Monday (July 28) after last week's losses in a quiet forex market ahead of Wednesday's Federal Reserve meeting and its possible update of US rate plans.

The euro was at US$1.3438, up from US$1.3430 on Friday. The yen and the pound were little-changed against both.

The Fed meeting comes amid rising voices for Chair Janet Yellen to signal a less dovish stance on interest rates to quell what some analysts say are overheated asset markets and bubbles in some sectors, including corporate debt.

Increasingly, economists say the Fed needs to accelerate its plan to begin lifting interest rates off the near-zero level from late 2015 to early in the year.

Richard Fisher, the hawkish head of the Federal Reserve's Dallas branch, said in a newspaper piece on Sunday that the country is experiencing financial excess that is of our own making."

He warned that Yellen's plans to use broader economic and financial system supervision to protect against bubbles is not enough and is providing "an artificial sense of confidence."

But bond markets did not appear to take that warning deeply: Treasury bond yields rose slightly Monday but remained well below the year's highs.

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