LONDON, Oct 31 - The dollar came under pressure across the board on Thursday, helping the euro to a two-week high as uncertainties over the U.S. economy reigned ahead of key data later this week. The yen kept its edge on the dollar, holding near a recent three and half week high, after Japan's long-awaited bank reform plan and anti-deflation package looked set to cause less economic pain than first thought. Analysts said the focus had swung round to U.S. data due later in the day and Friday's employment report, with many expecting the numbers to reinforce the view the Federal Reserve will lower rates before the year end, possibly even next week.
"Expectations for a fed funds cut have risen sharply. There is an increasing worry that the U.S. is heading towards a double dip recession and that is largely keeping the dollar under pressure," said Michael Klawitter, senior currency economist at WestLB. By 0830 GMT, the dollar was a quarter percent down on the day at $0.9870 and 0.4 percent lower at 122.43 yen. It was also 0.4 percent down against the Swiss franc at 1.4823 francs, its weakest for two and half weeks.//www.forbes.com