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FOREX-Dollar index hits 2-week low ahead of FOMC minutes

* Dollar under pressure on fading hopes on Trump's tax plan Euro reaches 2-week peak on less worries about Catalonia

(New throughout, updates prices and market activity; new byline, changes dateline, previous LONDON) NEW YORK, Oct 11 (Reuters) - The dollar fell on Wednesday to a two-week low against a basket of currencies, ahead of the U.S. Federal Reserve's release of the minutes on its September policy meeting where policy-makers decided to pare the central bank's $4.5 trillion balance sheet. While the Fed revealed plans to reduce its vast holdings of Treasuries and mortgage-backed securities, the minutes may provide clues on whether a U.S. interest rate hike is planned for December, analysts said. The Fed will release minutes of its Sept. 19-20 meeting at 2 p.m. EDT (1800 GMT). The dollar has weakened from a 10-week high since Friday, when the September payrolls report showed employers cut jobs.

"After last Friday's disappointing payrolls number, people has been taking profit" on U.S. dollar positions, said Lennon Sweeting, chief market strategist at XE.com Inc. in Toronto. Investors were also concerned U.S. President Donald Trump could hurt his tax reform plan by feuding with Senator Bob Corker, a fellow Republican whose vote Trump will probably need.

The dollar index, which measures the greenback against six currencies, shed 0.2 percent to 93.104 after hitting 92.961, its lowest since Sept. 26. The greenback was particularly weaker versus the euro as Spanish stocks and bonds surged after Catalonia stopped short of formally declaring independence from the rest of Spain.

The single currency was also supported by expectations that the European Central Bank would announce at its policy meeting later this month that it is winding back its 2.3 trillion euro bond-buying program. Any more advances by the euro should be limited since it has already appreciated more than 12 percent against the dollar this year, analysts said. The euro reached a 2-week peak at $1.1858. It was last at $1.1841, up 0.3 percent from Tuesday.

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Currency bid prices at 10:59AM (1459 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change

Session

Euro/Dollar EUR= $1.1842 $1.1806 +0.30% +12.64% +1.1858 +1.1796 Dollar/Yen JPY= 112.2400 112.4400 -0.18% -3.96% +112.5800 +112.0800 Euro/Yen EURJPY= 132.93 132.76 +0.13% +7.95% +133.0200 +132.4700 Dollar/Swiss CHF= 0.9722 0.9749 -0.28% -4.48% +0.9767 +0.9717 Sterling/Dollar GBP= 1.3188 1.3202 -0.11% +6.91% +1.3222 +1.3177 Dollar/Canadian CAD= 1.2513 1.2513 +0.00% -6.83% +1.2530 +1.2488 Australian/Doll AUD= 0.7776 0.7776 +0.00% +7.78% +0.7809 +0.7776

ar

Euro/Swiss EURCHF= 1.1514 1.1513 +0.01% +7.44% +1.1539 +1.1499 Euro/Sterling EURGBP= 0.8979 0.8940 +0.44% +5.41% +0.8985 +0.8940 NZ NZD= 0.7067 0.7067 +0.00% +1.82% +0.7098 +0.7064

Dollar/Dollar

Dollar/Norway NOK= 7.9154 7.9496 -0.43% -8.35% +7.9562 +7.9078 Euro/Norway EURNOK= 9.3746 9.3880 -0.14% +3.18% +9.3909 +9.3725 Dollar/Sweden SEK= 8.0560 8.0719 +0.11% -11.55% +8.0829 +8.0443 Euro/Sweden EURSEK= 9.5413 9.5306 +0.11% -0.40% +9.5441 +9.5215

All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX World central bank news CEN

Economic Forecasts... ECON Official rates...INT/RATE Forex Diary.......MI/DIARY Top events........M/DIARY

Diaries...........DIARY Diaries Index........IND/DIARY Press Digests.....PRESS Polls on G7 economies..SURVEY/ European markets......MARKETS/))

(Additional reporting by Jemima Kelly, Saikat Chatterjee in London; Shinichi Saoshiro in Tokyo; Editing by David Gregorio)