Nov. 4 (Bloomberg) -- The dollar may drop after today’s Federal Reserve interest-rate decision on concern inflation may accelerate, according to Bank of Tokyo-Mitsubishi UFJ Ltd.

“What will be crucial to watch in the coming days are measures of inflation expectations in the financial markets,” Derek Halpenny, European head of global currency research at the bank in London, wrote today in a report. “An unchanged message from the Fed today in circumstances of improving economic and financial market conditions may fuel increased concerns over long-term inflation. A near-term dollar sell-off in the aftermath of the Federal Open Market Committee is a high risk, that may well play a part in a shift from the FOMC at the next meeting in December.”

To contact the reporter on this story: Daniel Tilles in London at dtilles@bloomberg.net

Last Updated: November 4, 2009 06:10 EST