FOREX-Dollar slips with U.S. Treasury yields but still up for week; bitcoin falls

    (Updates throughout, previous dateline LONDON)
    By Caroline Valetkevitch
    NEW YORK, Jan 21 (Reuters) - The U.S. dollar edged lower with U.S. Treasury yields on Friday, with
investors looking ahead to next week's Federal Reserve meeting for more clarity on the U.S. outlook for rate
    Expectations that the Fed will tighten monetary policy at a faster pace than previously anticipated had
driven a rise in yields and the dollar earlier this week, and the U.S. dollar index remained on track
for its biggest weekly percentage gain since mid-December.
    U.S. Treasury yields fell Friday as concerns about potential conflict in Ukraine dented risk appetite.

    Markets are pricing in as many as four rate hikes this year, starting from March and expect the Fed to
start trimming its $8 trillion-plus balance sheet within months. Next week's Fed meeting could shed some
light on how fast it will tighten.
    "Everything is going to be somewhat calm" until the Fed releases its statement on Wednesday after the
two-day meeting, said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto.
    "It makes sense the dollar is somewhat muted today given the lack of real impetus from the data front."
    The dollar index, which tracks the greenback against major peers, was down 0.2% on the day at 95.555 but
up 0.4% for the week so far.
    In cryptocurrencies, bitcoin was also dragged lower, and was last down more than 4%.
    Against the yen, the dollar was last down 0.3% at 113.685, while the euro was up 0.3%
againt the dollar at $1.1311.
    Retail sales in Britain added recent weaker economic data. The pound was down 0.3% against the dollar at
    Currency bid prices at 10:53AM (1553 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change
 Dollar index                 95.5550        95.7650     -0.21%         -0.113%       +95.8400    +95.4910
 Euro/Dollar                  $1.1348        $1.1311     +0.33%         -0.18%        +$1.1360    +$1.1301
 Dollar/Yen                   113.6850       114.0900    -0.33%         -1.23%        +114.1500   +113.6000
 Euro/Yen                     129.00         129.04      -0.03%         -1.01%        +129.3000   +128.5700
 Dollar/Swiss                 0.9113         0.9173      -0.65%         -0.10%        +0.9172     +0.9108
 Sterling/Dollar              $1.3556        $1.3593     -0.28%         +0.23%        +$1.3602    +$1.3546
 Dollar/Canadian              1.2526         1.2504      +0.21%         -0.90%        +1.2554     +1.2498
 Aussie/Dollar                $0.7202        $0.7227     -0.35%         -0.93%        +$0.7229    +$0.7183
 Euro/Swiss                   1.0339         1.0374      -0.34%         -0.29%        +1.0377     +1.0336
 Euro/Sterling                0.8369         0.8315      +0.65%         -0.37%        +0.8376     +0.8316
 NZ                           $0.6729        $0.6755     -0.40%         -1.70%        +$0.6758    +$0.6708
 Dollar/Norway                8.8790         8.8390      +0.48%         +0.81%        +8.9120     +8.8105
 Euro/Norway                  10.0777        9.9912      +0.87%         +0.65%        +10.1141    +9.9814
 Dollar/Sweden                9.1694         9.2234      -0.27%         +1.68%        +9.2434     +9.1534
 Euro/Sweden                  10.4065        10.4349     -0.27%         +1.68%        +10.4476    +10.3838

 (Additional reporting by Iain Withers and Sujata Rao in London and Kevin Buckland in Tokyo; Editing by Hugh
Lawson, Susan Fenton and Richard Chang)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.