LONDON, April 28: The euro edged higher against the dollar in late trade here on Monday, regaining some ground lost earlier on expectations the US Federal Reserve is about to signal an end to its rate-cutting cycle.

The single European currency in late-day deals was at $1.5647 against $1.5624 late Friday in New York, with traders shedding their dollar assets ahead of what is expected to be another US rate cut on Wednesday.

The dollar was meanwhile trading at 104.35 yen, down from 104.39 on Friday.

Earlier the US currency had firmed against the euro on growing expectations that the Fed, following Wednesday’s policy-setting meeting, will let it be known that its rate-cutting stance is about to change.

The decision on Wednesday will likely bring another quarter point reduction, taking the benchmark Fed Funds rate down to 2.0 per cent, but also a warning that more cuts may not be forthcoming.

The dollar has declined sharply against the euro this year as the Fed, the US central bank, slashed interest rates in a bid to spur growth. The lower rates have made the greenback less attractive to investors than the euro, notably as the European Central Bank has kept its rates on hold at 4.0 per cent.

“Traders are reluctant to be exposed to shorting the US currency ahead of Wednesday’s... decision, which may signal the Fed’s intention to pause its eight-month-long easing campaign,” said Ashraf Laidi at CMC Markets.—AFP