(Corrects day of week in lede)
* Focus turns to Fed meeting
* Bitcoin eyes $40,000 after report Amazon to accept it as
* Ifo German business climate index due at 0800 GMT
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
LONDON, July 26 (Reuters) - The dollar slipped against a
basket of currencies on Monday as investor focus turned to this
week's Federal Reserve meeting, while cryptocurrencies jumped to
their highest levels in weeks.
The euro ticked 0.3% higher to $1.1797 ahead of
Ifo's business climate index for Germany, which will be out at
0800 GMT. The yen also gained 0.4% to 110.11 yen per dollar.
Cryptocurrency bitcoin jumped 10% to over a five-week high
of $39,850, while ether gained 7.35% to $2,353
after London's City A.M. newspaper cited an un-named
"insider" on the weekend as saying that Amazon is
looking to accept bitcoin payments by year-end.
The report followed Twitter boss Jack Dorsey's
comment on Friday that the digital currency is a "big part" of
the social-media company's future.
The dollar index, which measures the currency against
six major peers, slipped slightly to 92.833 due to pressure from
the euro and yen, but was still close to last week's 3-1/2-month
high of 93.194.
It has gained nearly 4% from a recent low on May 25 as an
improving U.S. economy bolstered the outlook for the Fed to
start paring asset purchases as early as this year.
"We think that the Fed will have detailed tapering
discussions, but without providing any concrete guidance and
short of a taper warning or decision," CitiFX analysts Ebrahim
Rahbari and Lenny Jin wrote in a note to clients.
They added that there were risks for a slightly later
announcement of a taper decision from the Fed - for example, out
to the fourth quarter - given the added uncertainty associated
with the Delta variant of the coronavirus.
The Fed at its last meeting on June 16 dropped a reference
to the coronavirus as a drag on the economy.
"Given the policy divergence between the Fed and a staunchly
dovish ECB, we see euro/dollar as broadly range-bound, but that
this environment does not point to dollar strength," the CitiFX
The risks from the Delta variant continue to rise globally,
with U.S. top infectious disease official Anthony Fauci saying
some Americans may need booster shots amid new mask mandates and
a surge in new cases.
China reported its highest number of cases since the end of
January, while new infections have also spiked in Japan, where
Tokyo is currently hosting the Olympics.
Australia's most populous state of New South Wales, home to
Sydney, reported a rise in new COVID-19 cases on Monday despite
a weeks-long stay-at-home order.
Meanwhile, the MSCI index of Asia-Pacific stocks excluding
Japan fell 2% on Monday, as Chinese blue chips
(Reporting by Ritvik Carvalho, additional reporting by Kevin
Buckland in Tokyo; Editing by Emelia Sithole-Matarise)