Sharjah24 - Reuters: The dollar held just below multi-decade peaks on Tuesday as traders awaited a rate hike from the U.S. Federal Reserve but wondered whether hints of a slowing economy may prompt a shift away from its focus on inflation.

The euro rose 0.21% to $1.0240 but was hemmed in by uncertainty over Europe's energy security, which is not helped by a looming cut in the westbound flow of Russian gas.

The yen steadied at 136.43 per dollar.

The Fed concludes a two-day meeting on Wednesday. Traders have been dialling back expectations as markets try to figure out if or when policymakers might pause inflation-fighting efforts amid signs the economy is starting to slow.

Futures pricing points to a 75 basis point (bp) rate hike with a 10% risk of 100 bps.

"I don't think the market's got a very good, confident feel that it's going to be one flavour of surprise or the other," said Imre Speizer, an analyst at Westpac in Auckland.

"Which is enough to hold the dollar in place."