LONDON, Sept 17: The euro steadied against the dollar on Monday on the eve of a US Federal Reserve policy meeting, but the pound fell on British banking sector woes.

In late European trading, the European single currency dipped to $1.3860, from $1.3874 in New York late on Friday.Last week the euro forged an all-time record high of $1.3927.

The dollar fell to 115.15 yen, from 115.36 yen late on Friday.

The prime focus for currency markets on Monday was an interest rate decision by the Federal Reserve Open Market Committee due late Tuesday.

The US Fed is expected to consider a cut in interest rates to help improve credit flows and ease stress in the US housing market, which is experiencing its worst slump in decades and threatening the overall economy.

The euro was changing hands at $1.3860, against $1.3874 late on Friday, 159.56 yen (160.04), 0.6942 pounds (0.6909) and 1.6475 Swiss francs (1.6506).

—AFP