Jan 17 Reuters Major stock markets in the Gulf fell in early trade on Wednesday as investors struggled with the possibility that the Federal Reserve may not cut U.S. interest rates as soon as previously expected.

Fed Governor Christopher Waller said the U.S. is within striking distance of the central bank39;s 2 inflation goal, but it should not rush toward cuts in its benchmark interest rate until it is clear that lower inflation will sustain.

The Fed has left the policy rate in the current range of 5.25 to 5.5 since July.

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Dubai39;s main share index dropped 0.3, weighed down by a 0.9 fall in bluechip developer Emaar Properties and a 2.2 decrease in Tecom Group.

In Abu Dhabi, the index was down 0.2, with conglomerate International Holding losing 0.7.

Elsewhere Abu Dhabi Commercial Bank ADCB eased 0.2.

ADCB, UAE39;s thirdlargest lender, will set up a branch in Riyadh after it obtained an inprinciple approval from Saudi Arabia, the lender said in a statement on Wednesday.

The Qatari benchmark retreated 0.4, hit by a 1.1 fall in the Gulf39;s biggest lender Qatar National Bank and a 1 decline in petrochemical maker Industries Qatar.

Meanwhile, the Qatar Investment Authority QIA and fund manager Ashmore Group have launched a fund aimed at encouraging foreign investors to buy into the Gulf country39;s…