Dollar holds euro gains

TOKYO: The dollar held steady against the euro Tuesday as markets bet on a Federal Reserve rate hike next month, while emerging market currencies got a lift from optimism over the world´s top economy.
Dealers are awaiting fresh economic data, including US growth later Tuesday, as they look for the latest clues about the direction of Fed policy.
The greenback has rallied against its major peers on the chances of a small increase in borrowing costs in December, a prospect boosted by comments from Fed officials including its chief Janet Yellen.
In a letter Monday to consumer advocate Ralph Nader defending the Fed´s near-zero rate policy, Yellen said more upbeat data would mean that "it will be appropriate to begin to normalise interest rates".
In Tokyo, the euro bought $1.0638 from $1.0636 Monday in New York, while it slipped to 130.55 yen from 130.64 yen.
Washington´s revised estimate of third-quarter growth is expected to be lifted to 2.0 percent from 1.5 percent.
"The rhetoric from the Fed suggests numbers would have to fall off a cliff to stop an interest-rate rise in December," Michael McCarthy, chief markets strategist in Sydney at CMC Markets, told Bloomberg News.