* Dollar index near its lowest since early March
* Fed seen repeating dovish messages after FOMC
* Yen little changed after BOJ stands pat
* Bitcoin steadies after 10% gains on Monday
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Kevin Buckland and Hideyuki Sano
TOKYO, April 27 (Reuters) - The dollar hovered near
multi-week lows versus major peers on Tuesday, weighed by
subdued Treasury yields ahead of the Federal Reserve's policy
decision this week, while the yen hardly budged after the Bank
of Japan kept its policy on hold.
The safe-haven greenback was also out of favour after world
stocks started the week hitting a record high, amid increasing
investor confidence in a rapid global recovery from the
pandemic.
"The dollar doesn't seem to have the strength it had earlier
this year," said Kyosuke Suzuki, chief of financial algotech
company at Ryobi Systems. "It had been driven by various
expectations, such as massive fiscal spending and speedy
vaccinations in the States. Most of those appear to have been
priced in."
The dollar index =USD , which tracks the U.S. currency
against six peers, was little changed at 90.947 in mid-Asian
session, after dipping to the lowest since March 3 overnight at
90.679.
The dollar added 0.1% to 108.18 yen JPY= , another haven
currency, continuing its rise from the seven-week low of 107.48
reached Friday.
The yen showed a muted response after the Bank of Japan kept
its monetary policy on hold as widely expected. Additionally, no change to policy is expected when the
Federal Open Market Committee ends its two-day meeting on
Wednesday.
However, the market will pay close attention to comments
from Fed Chairman Jerome Powell, who is likely to face questions
over whether improving conditions warrant a withdrawal of
monetary easing.
Most analysts though expect him to say such talk is
premature, which could put downward pressure on Treasury yields
and the dollar.
"The reflation trade is back on," Gavin Friend, a strategist
at National Australia Bank, said on a client podcast.
"Currencies outside of the dollar should be doing quite well
anyway in that environment."
The dollar has fallen nearly 3% since late March as U.S.
Treasury yields traded in narrow ranges after retreating from a
14-month high of 1.7760%, slashing the currency's yield appeal.
The benchmark 10-year Treasury yield US10YT=RR was around
1.58% on Tuesday, tracking sideways since sliding to a one-month
low of 1.528% in the middle of this month.
The euro slipped 0.1% to $1.2071 EUR= , but remained close
to the two-month high of $1.2117 reached Monday.
The commodity-linked Australian dollar, a barometer of risk
appetite, eased 0.15% to $0.7789 AUD=D3 , after a 0.7% rally
overnight that took it just shy of a five-week peak.
The offshore Chinese yuan retreated 0.1% after rising to a
seven-week top of 6.4710 per dollar CNH=EBS on Monday.
In cryptocurrencies, bitcoin BTC=BTSP traded around
$53,500 following a 10% surge on Monday, driven by reports that
JPMorgan Chase JPM.N is planning to offer a managed bitcoin
fund. That snapped a five-day losing streak that took the digital
token to the cusp of $47,000, with losses accelerating amid
worries about U.S. President Joe Biden's plan to raise capital
gains taxes.
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Currency bid prices at 0352 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2070 $1.2087 -0.12% -1.20% +1.2090 +1.2065
Dollar/Yen JPY=EBS 108.2400 108.1400 +0.10% +4.80% +108.3800 +108.1800
Euro/Yen
Dollar/Swiss CHF=EBS 0.9158 0.9141 +0.21% +3.54% +0.9161 +0.9145
Sterling/Dollar GBP=D3 1.3881 1.3906 -0.17% +1.61% +1.3901 +1.3877
Dollar/Canadian CAD=D3 1.2403 1.2394 +0.06% -2.61% +1.2409 +1.2389
Aussie/Dollar AUD=D3 0.7785 0.7802 -0.21% +1.21% +0.7803 +0.7781
NZ NZD=D3 0.7216 0.7236 -0.25% +0.52% +0.7237 +0.7214
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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