SINGAPORE, July 26 Reuters The dollar held just below multidecade 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 Europe39;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 twoday meeting on Wednesday. Traders have been dialling back expectations as markets try to figure out if or when policymakers might pause inflationfighting 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 don39;t think the market39;s got a very good, confident feel that it39;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.

The U.S. dollar index was slightly lower at 106.270, but not too far below a 20year high of 109.290 hit in midJuly, as the greenback draws strength from expectations of U.S. rate rises and as a safe bet in a global slowdown.

A profit warning from Walmart on Monday, which said customers were tightening their belts, was the latest sign that the going is getting tough, following several softerthanexpected U.S. and European data prints.

The Australian and New Zealand dollars eked small gains….