* Powell expected to reiterate it's too soon for taper talk
* Riskier currencies benefit as IMF upgrades growth forecast
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Kevin Buckland
TOKYO, Jan 27 (Reuters) - The dollar was trapped on the back
foot against major peers on Wednesday as markets wait on
comments from Federal Reserve Chair Jerome Powell, who is likely
to renew a commitment to ultra-easy policy. The greenback held declines against riskier currencies, with
pandemic recovery hopes getting a boost as the International
Monetary Fund upgraded its forecast for 2021 global growth.
Treasury yields, whose rise had supported the dollar at the
start of this year, declined overnight amid caution about the
eventual size of and potential delays to President Joe Biden's
$1.9 trillion fiscal stimulus plan. "The stronger the world economic outlook, the weaker the
U.S. dollar," said Joseph Capurso, currency analyst at
Commonwealth Bank of Australia in Sydney.
"Powell is going to make clear that they don't see any
near-term exit from their very easy policy stance, and that's
going to pull the dollar down."
Powell is due to speak at a news conference after the Fed's
two-day policy meeting that ends Wednesday.
Traders are also keenly watching progress on the U.S.
stimulus front after Senate Majority Leader Chuck Schumer said
Democrats may try to pass much of the President's massive
spending package with a majority vote, but it is not clear if
they have the numbers to override Republican objections.
The dollar index =USD was little changed at 90.172 early
in the Asian session, holding Tuesday's 0.2% decline.
The greenback traded at 103.61 yen JPY=EBS , little changed
after a 0.1% slide overnight.
The euro EUR=EBS was mostly flat at $1.21625 after rising
around 0.1% in the previous session.
The riskier Aussie dollar AUD= gained 0.1% to 77.51 U.S.
cents, adding to Tuesday's 0.5% rally.
The British pound GBP= climbed as high as $1.3753 for the
first time since May 2018 on Thursday, before trading 0.1%
higher at $1.3746.
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Currency bid prices at 9:16AM (016 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2166 $1.2160 +0.05% -0.42% +1.2167 +1.2160
Dollar/Yen JPY=D3 103.6020 103.6450 +0.00% +0.34% +103.6300 +0.0000
Euro/Yen EURJPY= 126.05 125.99 +0.05% -0.69% +126.0700 +126.0100
Dollar/Swiss CHF=EBS 0.8864 0.8869 -0.02% +0.23% +0.8868 +0.8867
Sterling/Dollar GBP=D3 1.3742 1.3735 +0.07% +0.60% +1.3742 +1.3737
Dollar/Canadian CAD=D3 1.2689 1.2695 -0.02% -0.32% +1.2694 +1.2693
Aussie/Dollar AUD=D3 0.7754 0.7748 +0.10% +0.82% +0.7755 +0.7743
NZ NZD=D3 0.7240 0.7239 +0.04% +0.85% +0.7240 +0.7232
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX
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World FX rates https://tmsnrt.rs/2RBWI5E
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