FOREX-Dollar muted as investors await Fed outlook on rates

(Updates prices, adds analyst comment, adds FX table) By Hannah Lang and Amanda Cooper WASHINGTON/LONDON, March 22 (Reuters) – The dollar edged up but hovered around five-week lows on Wednesday, before the conclusion of the Federal Reserve’s policy meeting at which investors will be looking for any insight into what might happen with interest rates given the turmoil in the banking sector. Markets show a quarter-point rise in U.S. rates is the most likely outcome, but investors will be keen to hear what Chair Jerome Powell says about the crisis that has rattled global banks this month and how carefully the central bank feels it needs to tread. “The bank run has abated for the moment, but that might be contingent on what the Fed signals today,” said Adam Button, chief currency analyst at ForexLive in Toronto. “The risk is that the (Federal Open Market Committee) shatters the fragile calm in markets…

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