* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Dollar in tight range before Fed meeting
* Euro down after Lagarde curbs tapering speculation
* Commodity prices hold key for commodity currencies
By Stanley White
TOKYO, April 23 (Reuters) - The dollar was hemmed into a
narrow trading range on Friday as traders contemplate the next
moves by major central banks ahead of a U.S. Federal Reserve
meeting next week.
The euro nursed losses after European Central Bank President
Christine Lagarde squashed expectations that policymakers will
start to consider a tapering of bond purchases due to an
improving economic outlook.
Fed Chairman Jerome Powell is likely to repeat Lagarde's
message that talk of tapering is premature, which would put
downward pressure on Treasury yields and cap the dollar's gains
against most currencies.
"Powell has to reiterate the continuation of easy monetary
policy just like Lagarde," said Masafumi Yamamoto, chief
currency strategist at Mizuho Securities.
"As a result, the dollar is likely to fall against the yen,
but the larger trend for the dollar is still mixed. The dollar
can still rise against commodity currencies if commodity prices
start falling again."
The dollar stood at 107.90 yen JPY=D3 , close to a
seven-week low.
The euro EUR=D3 bought $1.2017 after falling 0.2% on
Thursday.
The British pound GBP=D3 was quoted at $1.3842 following a
0.6% loss in the previous session.
The dollar was little changed at 0.9169 Swiss franc
CHF=EBS .
The Fed's next meeting ends on April 28, and while no major
policy changes are expected, investors are paying close
attention to any comments about the chance of scaling back
monetary easing in the future.
Rising coronavirus vaccination rates and an improving
economic outlook are reasons to be optimistic, but investors are
scaling back expectations for a withdrawal of monetary easing
after Lagarde said talk of phasing out emergency bond purchases
is premature, analysts said. Data on manufacturing and services activity in both the
United States and Germany are due later on Friday, which could
support positive economic sentiment, but the dollar and the euro
are unlikely to move much as investors stick to the sidelines
before the Fed's meeting, analysts said.
Elsewhere, the Australian AUD=D3 and New Zealand dollars
NZD=D3 steadied on Friday, but traders said risks are pointed
to the downside due to a recent weakening in commodity prices.
========================================================
Currency bid prices at 0024 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2017 $1.2016 +0.01% -1.65% +1.2019 +1.2013
Dollar/Yen JPY=EBS 107.9050 108.0400 -0.06% +4.53% +107.9950 +107.9700
Euro/Yen
Dollar/Swiss CHF=EBS 0.9169 0.9169 +0.00% +3.64% +0.9172 +0.9169
Sterling/Dollar GBP=D3 1.3842 1.3842 -0.04% +1.27% +1.3844 +1.3836
Dollar/Canadian CAD=D3 1.2494 1.2503 -0.05% -1.87% +1.2509 +1.2496
Aussie/Dollar AUD=D3 0.7711 0.7708 +0.06% +0.26% +0.7713 +0.7693
NZ NZD=D3 0.7160 0.7166 -0.05% -0.26% +0.7163 +0.7151
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX
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World FX rates https://tmsnrt.rs/2RBWI5E
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