LONDON, Jan 27 (Reuters) - The euro rose against the dollar on Tuesday as investors eyed a meeting of the U.S. Federal Reserve that could push back expectations of when U.S. interest rates will start to rise.
The euro rose 0.7 percent to trade at $1.1324, taking it further away from an 11-year trough of $1.1098 hit on Monday.
The euro had hit the low as it became clear that Greece had voted in a new anti-bailout government. But as it emerged that the left-wing Syriza party had not won an absolute majority, the euro regained its footing, and bounced further on relief that its leader, Alexis Tspiras, appeared willing to negotiate, traders said.
Ahead of a two-day Fed policy meeting that starts later on Tuesday, the dollar edged down across the board as investors bet the Fed might respond to a recent string of rate cuts and easing measures by other major central banks by pushing back expectations of when U.S. rates will rise. (Reporting By Jemima Kelly, editing by Nigel Stephenson)