* Graphic: World FX rates in 2019
By Saikat Chatterjee
LONDON, March 15 (Reuters) - The dollar slipped against its rivals
on Friday and was set for its biggest weekly drop in more than three
months before a U.S. central bank meeting next week where policymakers
will shed more light on the outlook for interest rates.
While no change in policy rates is expected next week after the
Fed paused a multi-year rate hiking cycle in January, officials might
strike a more cautious view on the outlook for the global economy
after a volatile week in currency markets.
"We are coming to the end of a very exhausting week in
currency markets with the Brexit news and investors are waiting to get
more insights from the Fed," said Esther Maria Reichelt, an FX
strategist at Commerzbank.
Against its rivals , the dollar fell 0.2 percent to 96.61 in
early London trading. For the week, it is set to weaken 0.7 percent,
its biggest drop since early December.
Antipodean currencies led by the Australian dollar and its New
Zealand counterpart were the biggest gainers against the dollar
after Beijing said it can use reserve requirements and interest rates
to support growth.
The outlook for both those currencies is heavily correlated with
the outlook for the Chinese economy.
The yen remained firm after the Bank of Japan kept monetary
policy steady but tempered its optimism that robust exports and
factory output will underpin growth, giving a boost to its perceived
Elsewhere, the pound paused for breath but stayed on course for
its biggest weekly gain in seven weeks on growing expectations that
Britain won't crash out of the European Union without a deal on March 29.
Sterling last traded at $1.3217, below Wednesday's nine-month
high of $1.3380 but up 1.8 percent so far this week, the biggest such
gain since late January after the UK parliament voted to seek a delay
in Britain's exit from the European Union, following a decision to
avert a no-deal Brexit.
The Chinese currency in the offshore market also remained firm
against the dollar at 6.71 yuan per dollar.
(Reporting by Saikat Chatterjee Editing by Peter Graff)
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