Dollar steady

    172

    TOKYO- The US dollar clung to small gains from the start of the week on Tuesday as caution reigned in currency markets ahead of major central bank meetings, headlined by a two-day Federal Reserve gathering beginning later in the global day.

    The greenback hovered just off its highest since June versus the yen and cemented a position around $1.19 per euro in muted trading.

    The Bank of Japan and Bank of England are also set to meet this week.

    Bitcoin was back around $55,000 after tumbling from the weekend’s all-time high near $62,000.

    The firm tone for the dollar came despite a retreat in US benchmark yields from the highest levels in more than a year ahead of the Fed meeting.

    Policymakers are not likely to detour from monetary policy despite an expected forecast of rapid economic growth in 2021 in the wake of an accelerating COVID-19 vaccine rollout and a $1.9 trillion pandemic relief package heading to taxpayers and others.

    A particular focus will be on any comments about the run-up in yields, which have risen on bets faster growth and inflation will prompt the central bankers to move faster than they have so far signaled in normalizing policy.