London

THE dollar slumped to a more than one-year low against a basket of currencies on Tuesday as investors grew more wary on the short-term outlook although they held off placing more bearish bets ahead of a Federal Reserve meeting starting on Tuesday.

The Fed starts a two-day meeting with no change to interest rates expected. Markets give a less than 50 per cent probability of a rate increase before the end of the year, according to CME's Fedwatch tool.