Dollar pauses as Fed officials caution about global growth

SINGAPORE, Nov 19 (Reuters): The dollar eased slightly versus other major currencies on Monday after Federal Reserve officials expressed caution over the global growth outlook, prompting traders to reassess the pace of future US interest rate increases.

The greenback has enjoyed a strong run this year thanks to the Fed's steady policy tightening on the back of a robust economy and rising wage pressures.

A fourth rate hike for this year is expected next month and policy makers had indicated two more by June 2019.

But comments on Friday by Richard Clarida, the Fed's newly-appointed vice chair, put to the test market expectations for a steady pace of tightening.

Clarida cautioned about a slowdown in global growth, saying "that's something that is going to be relevant" for the outlook for the US economy.

Federal Reserve Bank of Dallas President Robert Kaplan, in a separate interview with Fox Business, also said he is seeing a growth slowdown in Europe and China.

The comments may hint that the Fed is set to slow down its pace of monetary tightening and led some traders to question whether the dollar's rally was nearing its end, with the benchmark US 10 year treasury yields pulling back slightly.

New York Fed President John Williams will speak later on Monday and traders would be waiting to see if he echoes the same theme as his colleagues.