Oct 22 Reuters The U.S. dollar was just off a 212 month high on Tuesday on expectations the Federal Reserve will take a measured approach in easing its policy, while a tooclosetocall U.S. election campaign kept investors on edge.

The dollar39;s strength, boosted by rising Treasury yields, kept pressure on the yen, euro and sterling, a theme that has been building over the past few weeks as traders scale back their bets on rapid U.S. rate cuts.

Benchmark 10year Treasury yields rose 3 bps in London trade to a fresh 12week high as investors priced for a more robust American economy.

Some analysts argued that the release of the Beige Book late on Wednesday could be the biggest threat to the greenback this week, with the previous summary of economic conditions regarded by some as the main trigger for the 50basispointbprate cut in September that kicked off the Fed39;s easing cycle.

Markets are pricing in an 87 chance of the Fed cutting rates by 25 bps next month, versus a 50 chance a month earlier, when investors saw an equal likelihood of a larger 50bp cut, the CME FedWatch tool showed.

Traders are anticipating another 40 bps of easing overall for the rest of the year .

The U.S. dollar rose recently on the hawkish repricing of expectations for the Fed monetary policy and because uncertainty regarding U.S. elections reduced risk appetite supporting safehavens, said Nick Andrews, strategist at HSBC.

However, U.S. elections are still the main focus.

Markets expect the…