(Changes dateline, byline, updates prices, adds quotes)
By Simon Falush
LONDON, Oct 30 (Reuters) - The dollar recovered from record lows against the euro and a basket of major currencies on Tuesday as investors marginally trimmed expectations the Federal Reserve will cut interest rates this week to boost growth.
The Fed is widely seen lowering rates by a quarter-point to 4.5 percent after a two-day meeting ending on Wednesday to prevent broader damage to the U.S. economy from deterioration in the housing sector.
However the dollar benefited a little from a Wall Street Journal report on Tuesday that said a Fed rate cut this week is no sure thing and officials are not seriously considering a half-point cut.
"We're in a pattern of wait-and-see ahead of the FOMC decision," said Michael Klawitter, currency strategist at Dresdner Kleinwort in Frankfurt.
"There's been a bit of back-tracking on expectations of a cut so there has been some profit taking."
The article by Greg Ip, the WSJ's Fed watcher who is known for reflecting the views of senior central bankers, said policymakers view this week's decision as a choice between a quarter-point cut to 4.5 percent and not moving at all. [ID:nT181235]
Some market players were also taking profits on winning bets against the dollar and in higher-yielding currencies before the Fed meeting and this week's data on U.S. payrolls, traders said.
The euro was down 0.15 percent to $1.4402 <EUR=>, off a record peak of $1.4438 set on Monday according to Reuters data, the highest since its launch in 1999.
Currencies of commodity-producing countries, such as the Australian <AUD=> and Canadian dollars <CAD=>, slipped as recently strong gold and oil fell nearly 1 percent.
But traders said they were likely to resume their climb.
"While a weak dollar trend is expected to continue, Australian and Canadian dollars will likely benefit from their solid economic fundamentals and expectations for further rises in commodity prices," said a trader at a Japanese bank in Tokyo.
The dollar's trade-weighted index against six major currencies (.DXY: Quote, Profile, Research) edged up 0.1 percent to 76.914 after having slid to 76.777 on Monday, the lowest in the index's more than 30-year history.
The dollar eased 0.1 percent to 114.61 yen <JPY=> but was above a six-week low of 113.25 yen.
The Australian dollar fell 0.2 percent to $0.9163 <AUD=>, retreating from $0.9272 hit on Monday -- the highest since 1984.
Against the Canadian dollar, the dollar edged up to C$0.9555 after reaching a half-century low of C$0.9515 <CAD=> on Monday.
Investors will look to U.S. consumer confidence data at 1400 GMT for further clues on the prospects for interest rates.
Other data this week includes the first estimate of third-quarter economic growth on Wednesday, manufacturing data on Thursday and the October payrolls report on Friday.
The Bank of Japan also holds a policy meeting on Wednesday at which it is widely expected to keep rates on hold at 0.5 percent.