The US dollar was little changed against the yen and the euro in afternoon trade in Asia, with the US currency still supported by expectations of further increases in the Federal Reserve's interest rates after the widely expected quarter percentage point hike overnight, dealers said. The policy-making Federal Open Market Committee lifted the federal funds rate by 25 basis points to 4 pct, the highest level since June 2001. In the statement accompanying its decision, the Fed signaled that rates will continue to rise at a "measured pace". Fed officials noted that higher energy prices and the recent hurricanes in the US have temporarily depressed output and hiring. At 1.30 pm (0530 GMT) Singapore time, the euro was quoted at 1.2045 usd compared to 1.2036 earlier in Tokyo. The dollar/yen was at 116.75 from 116.72. In a note to clients, United Overseas Bank said market participants have revised up their expectations that the Federal Reserve may continue on its current tightening path into 2006. But UOB warned that "the apparent lack of acknowledgement of the potential growth impediments or uncertainties in the statement might somehow inject a false sense of undue optimism on the US economy". Overnight, data showed that the Institute for Supply Management manufacturing index eased to 59.1 in October from 59.4 in September but was above market expectations of 57.0. Dealers said a larger fall was expected given the rebuilding efforts following Hurricane Katrina in September, but the prices paid index surged to 84 from 78 in September. This is the highest price level since May 2004. Investors are expected to look for further clues on the US economy with other data to be released this week including the ISM nonmanufacturing index due tomorrow and the nonfarm payrolls on Friday.