YEREVAN, December 12 . /ARKA/. The dollar retreated against the euro and yen as investors fretted over whether the Federal Reserve will begin a rollback of its $85 billion bond-buying program this month.

The euro saw its seventh straight day of gains against the dollar, trading as high as $1.3811. The common currency recently traded at $1.3786 versus $1.3761 late Tuesday. The greenback traded at ¥102.48, down 0.5% but still near a six-month high of ¥103.40. It changed hands at ¥102.84 the previous session.

Investors have been trying to determine when the Fed will begin trimming its bond purchases, which have buoyed the economic recovery while weighing on the dollar. Recent economic data have only fueled the debate, showing a recovery that is steady, rather than stellar. The Fed is scheduled to meet on Dec 17-18.

"The dollar has lost ground in recent sessions on the view that the Federal Reserve may hold fire on a reduction in stimulus until early next year," said Joe Manimbo, market analyst at Western Union. "But with the next Fed decision seven days away, some investors see scope for a rollback in policy as soon as next week, keeping investors on their toes and some dollar bears at bay."

The euro, meanwhile, also received a boost after European Central Bank board member Benoit Coeure said the regulator sees no need to deploy "spectacular" measures, given its outlook for a gradual acceleration in consumer prices.

The ECB left monetary policy unchanged at its meeting this month, after cutting its key rate to 0.25% in November. –0—