Dollar pulls back
BoE expected to hike rates by 50 bps

LONDON, Aug 4 Reuters The dollar slipped against most major currencies on Thursday as the positive impact of hawkish Federal Reserve comments faded and investors waited for more signs on the data front to confirm that more large rate hikes to curb inflation were coming.

The Bank of England was widely expected to raise interest rates by the most since 1995, with sterling rising before the rate decision at 1100 GMT.

Fed officials have continued to push back against the perception that U.S. interest rates were close to peaking. San Francisco Fed President Mary Daly and Minneapolis Fed President Neel Kashkari voiced their determination overnight to rein in high inflation.

But the impact of the hawkish rhetoric on the dollar appeared to be fading, with the currency in a more defensive mood as the London session wore on.

Yesterday we had some hawkish comments, but maybe that39;s not enough and investors will be looking for confirmation from data, especially tomorrow39;s payrolls number, said ING currency strategist Francesco Pesole, referring to U.S. jobs data.

The effect on the dollar is fading today. Risk sentiment is also more upbeat and it doesn39;t look like markets are too worried about the Taiwan situation.

The dollar index, which measures the greenback against six peers, was at 106.18, down about 0.3 but holding above a onemonth low hit earlier this week.

The euro was up 0.25 at 1.0195 . The dollar was…