FOREX-U.S. dollar regains some ground as investors re-examine Fed bets

    (Updates prices, adds commentary, New York dateline)

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      Euro/dollar slides from three-month high


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      Fed's Waller: CPI last week was 'just one data point'


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      Cryptocurrencies under pressure after fall of FTX



    By Sinéad Carew and Joice Alves
       New York/London, Nov 14 (Reuters) - The U.S. dollar rose
against the euro and yen on Monday, as investors kept their
focus on the Federal Reserve's interest rate hiking path after a
policymaker said too much was being made of last week's cooler
U.S. inflation data.
    The dollar index fell 4% last week, marking its
biggest weekly drop since March 2020, after data showing U.S.
consumer prices rose less than expected in October prompted bets
the Fed would scale back its hefty interest rate hikes.
    But Governor Christopher Waller flagged on Sunday that the
inflation print was "just one data point" and that other similar
readings would be needed to show convincingly that inflation was
slowing. Waller did say that the Fed could now start thinking
about hiking at a slower pace.
    The comments, however, poured cold water on investor hopes
for a "rapid Fed recalibration," said Adam Button, chief
currency analyst at ForexLive in Toronto.
    "The market is having a bit of a rethink on the price action
of last week," said Button adding that it "needs some time to
digest the enormous."
    "Until there's some new information, I'd expect the market
to consolidate and digest some of these moves," he said.
    The euro fell 0.24% against the dollar to $1.0322,
after rising to a three-month high during Asian trading hours.
    "I think reality has finally hit markets. Following last
week's aggressive repricing, especially within European FX, and
the latest pushback from senior Fed officials, traders are
seemingly prioritising re-engaging in some U.S. dollar length,"
said Simon Harvey, head of FX analysis at Monex.
    "We think euro/dollar downside has further to run despite
ECB (European Central Bank) officials trying to underpin euro
zone rates," he added.
    ECB board member Fabio Panetta said on Monday that the
central bank must keep raising rates but needs to avoid
overtightening, as doing so could destroy productive capacity
and deepen an economic downturn.
    YUAN RALLY
    On the data front, figures showed on Monday that euro zone
industrial production rose much more than expected in September,
and output for August was revised upwards too, although
economists said that may be partly due to manufacturers
front-loading production before energy-related disruptions this
winter.
    Sterling fell ahead of British Chancellor Jeremy Gaunt's
autumn statement on Thursday, when he is expected to set out tax
rises and spending cuts. The pound was down 0.77% at
$1.11738, having risen 4% in the previous two sessions, touching
on Friday its highest level since late August.
    The dollar index, which gauges the greenback against a
basket of six other major currencies including the euro, yen,
and sterling, rose 0.74% to 107.072.
    Cryptocurrencies remained in turmoil after the fall of FTX.
The crypto exchange's token was up 4.79% on the day
at $1.49, but down 94% on a month-to-date basis, while
Crypto.com's Cronos token has been halved in the past week to
$0.07, according to price site CoinGecko.
    Bitcoin had fallen as far as $15,784 earlier on
Monday before recovering somewhat to trade up 1.82% at $16,607.
    China's onshore yuan rose to nearly a two-month
high against the dollar, after the central bank lifted its
official guidance fixing by the most since 2005 when Beijing
abandoned the currency's decade-old peg against the greenback.
    The yuan's rally coincided with a broad lift in Chinese
market sentiment on official moves to help the embattled
property sector and the government's decision to ease some of
the country's strict COVID-19 restrictions.
     Elsewhere, the dollar was up 1.25% against the yen
at 140.50.
    The risk-sensitive Australian and New Zealand
 dollars slipped against the greenback, giving up some
gains made after China moderated its zero-COVID strategy.
    ========================================================
    Currency bid prices at 10:04AM (1504 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change
                                              Session
                                                                                                  +106.4700
 Euro/Dollar                  $1.0322        $1.0347     -0.24%         -9.21%        +$1.0368    +$1.0272
 Dollar/Yen                   140.5000       138.7600    +1.25%         +22.04%       +140.7850   +138.4000
 Euro/Yen                     145.03         143.69      +0.93%         +11.29%       +145.0400   +143.4800
 Dollar/Swiss                 0.9464         0.9413      +0.57%         +3.78%        +0.9488     +0.9425
 Sterling/Dollar              $1.1738        $1.1835     -0.77%         -13.16%       +$1.1852    +$1.1724
 Dollar/Canadian              1.3273         1.3251      +0.16%         +4.97%        +1.3308     +1.3240
 Aussie/Dollar                $0.6700        $0.6707     -0.08%         -7.81%        +$0.6720    +$0.6664
 Euro/Swiss                   0.9769         0.9747      +0.23%         -5.79%        +0.9775     +0.9728
 Euro/Sterling                0.8790         0.8742      +0.55%         +4.65%        +0.8792     +0.8728
 NZ                           $0.6091        $0.6121     -0.53%         -11.05%       +$0.6127    +$0.6065
 Dollar/Dollar
 Dollar/Norway                10.0190        9.9465      +0.53%         +13.50%       +10.0425    +9.9710
 Euro/Norway                  10.3405        10.2827     +0.56%         +3.32%        +10.3504    +10.2423
 Dollar/Sweden                10.4583        10.3678     +0.44%         +15.98%       +10.4858    +10.3578
 Euro/Sweden                  10.7916        10.7439     +0.44%         +5.50%        +10.8030    +10.7256

 (Reporting by Sinéad Carew in New York, Joice Alves in London;
Editing by Kirsten Donovan, Alison Williams and Paul Simao)