* Dollar index edges up, still near 1-year low
* Euro falls to session low on French official comment
* Trading cautious as Fed statement, G20 summit loom
* BoE minutes show no plans to increase asset buying (Updates prices, adds comment, changes byline)
By Wanfeng Zhou
NEW YORK, Sept 23 (Reuters) - The dollar edged higher but remained near a one-year low against a basket of currencies on Wednesday as investors braced for the end of a Federal Reserve meeting expected to keep U.S. interest rates at record lows.
The euro fell to session lows versus the dollar after a French government official said France was worried about the single currency's strength. See ID:nPAB007911.
Dealers were on alert for signs that the Fed may curtail some of the programs that over the last year have injected trillions of dollars into the troubled banking system, and that was keeping exchange rate moves somewhat subdued.
"People are watching for tweaks to their current programs, which would be market-moving, but I don't think they want to rattle the markets right now," said Jacob Oubina, senior currency strategist at Forex.com in Bedminster, New Jersey.
In midday trading, the dollar index, which measures the dollar's value against a basket of six other major currencies, was higher at 76.211, off an earlier low of 75.892, a level not seen since last September.
The dollar has shed 2.5 percent this month and market strategists warned that any hints from the Fed about future exit strategies could squeeze large short dollar positions.
A withdrawal of stimulus would likely reduce the flow of dollars into the economy and boost the currency. The dollar has been on a downward trend since the Fed launched its policy of buying Treasuries in March.
The euro dropped to a session low of $1.4731, according to Reuters data, off a one-year high above $1.48 touched earlier. It was last at $1.4764, down 0.2 percent on the day and has gained 5.6 percent so far in 2009.
France is concerned about the level of the euro against other currencies and hopes the Group of 20 summit will set a timeframe for a future discussion on exchange rates, a French government source told Reuters. But he added he did not expect a precise discussion on currencies to take place at this week's meeting.
Matthew Strauss, senior currency strategist at RBC Capital Markets in Toronto, said he expects currency issues to be "very low on the list" of things to discuss for G20 policymakers.
The G20 meeting, which begins in Pittsburgh on Thursday, is expected to call on countries to maintain economic stimulus plans, a move which could give a boost to riskier assets.
Sterling rose 0.4 percent to $1.6410 and the dollar rose 0.3 percent to 91.40 yen.
Minutes from the Bank of England's last meeting showed officials did not press to increase asset purchases, while the dollar shed 0.8 percent against the Norwegian crown after the Norges Bank left rates unchanged but said it had considered raising them. (Additional reporting by Steven C. Johnson and Gertrude Chavez-Dreyfuss; Editing by Andrew Hay)