SINGAPORELONDON, Oct 14 Reuters The dollar hovered near recent highs on Monday as investors digested China39;s somewhat disappointing weekend stimulus announcements, while the euro extended its fall ahead of a central bank meeting this week.

The euro was down 0.1 at 1.092850 , falling for an 11th time in 12 sessions as investors priced in a widely expected 25 basis point interest rate cut from the European Central Bank at its Oct. 17 meeting, with data pointing to deteriorating euro zone activity.

Given the lagged effects with which policy operates it is hard to argue for more 39;wait and see39;, clearly policy is too restrictive, said Lloyds Bank strategist Sam Hill in a note.

The issue for ECB President Lagarde will be how to communicate the shift without unsettling the hawks still obsessing with the rearview mirror.

Currency moves were sluggish as Japanese markets were shut for Sports Day, while U.S. Treasuries were also unlikely to provide much of a lead since bond markets were closed for Columbus Day.

The pound trod water near onemonth lows at 1.30595.

The dollar index was just above 103 and closing in on last week39;s peak, its highest since midAugust, on the back of traders reducing bets on further jumbo rate cuts by the Federal Reserve at its remaining policy meetings this year.

Currency moves in major markets were tepid last week. The yen and euro both fell around 0.3 each, sterling shed 0.4 and the dollar index climbed 0.4.

Last week39;s U.S. data…