Nov. 3 (Bloomberg) -- The dollar remains vulnerable to the likelihood that the Federal Reserve will repeat its commitment to keep borrowing costs at a record low for an “extended period,” according to Bank of Tokyo-Mitsubishi UFJ Ltd.

Rate expectations in the U.S. “suggest growing confidence in the markets that the ‘‘extended period’’ phrase in the Federal Open Market Committee statement will not be tinkered with this week,” Derek Halpenny, European head of global currency research in London, wrote in an e-mailed report today. “The dollar is at the mercy of the FOMC statement released tomorrow and therefore remains vulnerable to ‘‘extended period’’ being maintained.”

To contact the reporter on this story: Justin Carrigan in London at jcarrigan@bloomberg.net

Last Updated: November 3, 2009 05:15 EST