Fed seen raising rates by 25 bps on Wednesday IRPR
SNB expected to hike rates by 50 bps on Thursday Reuters poll
Markets split on 25 bps or no hike for BoE on Thursday IRPR
Norges Bank seen hiking by 25 bps on Thursday Reuters poll

LONDON, March 21 Reuters The dollar fell and sterling steadied on Tuesday as traders reckoned banking stress could keep the Federal Reserve and the Bank of England from hiking rates much further, or at all, later in the week.

Investors39; focus has moved to a slew of central bank meetings due this week after days of volatility in markets caused by worries over the stability of the global banking sector.

The Swiss franc rose sharply against the dollar on expectations of a 50basis point hike on Thursday from the Swiss National Bank SNB, matching the European Central Bank39;s increase last week, as tackling inflation trumps concerns about financial market turmoil, according to a Reuters poll.

The dollar index , fell 0.3 to 103.02. The Swiss franc rose 0.6 to 0.92355, while sterling edged 0.2 lower to 1.2249.

Markets are pricing in a 85 chance of a 25bp hike when the Fed announces its monetary policy decision on Wednesday. The Fed hikes39; peak was seen at 5.5 only a few weeks ago, against about 4.8 now.IRPR

The dollar has followed those expectations lower, though general nervousness in financial markets has tempered selling.

Volatility in rates and the broader asset markets has been extraordinary recently, said John Velis, FX and…