FOREX-U.S. dollar mixed as investors bide time before Fed meeting

    * Yen unmoved after BoJ meeting
    * Graphic: World FX rates

 (Adds new comment, updates prices, changes byline, dateline; previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, April 27 (Reuters) - The dollar was mixed against major peers on Tuesday, gaining against the
yen and commodity currencies, with investors biding time ahead of a policy decision by the U.S. Federal
Reserve on Wednesday.
    The yen, on the other hand, hardly budged after the Bank of Japan kept its policy on hold.
    The safe-haven greenback was largely out of favor for most weeks after world stocks started the week
hitting a record high, although a pullback in global equities on Tuesday helped keep it above the recent
    Trading in currencies was largely subdued, ahead of the Fed's two-day meeting, which ends on Wednesday,
where no change to policy is expected.
    The market will pay close attention to comments from Fed Chairman Jerome Powell, who is likely to
address concerns and questions about whether improving economic conditions warrant a withdrawal of monetary
easing. Analysts, however, expect Powell to stick to the Fed's ultra-accommodative stance, which should
weigh on Treasury yields and the dollar.
    "The Fed is widely expected to maintain current policy settings on Wednesday, but traders are well aware
that a hawkish shift - an acknowledgement of underlying economic strength - could trigger renewed dollar
upside," said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto.
    "If signs of optimism leak through in the official statement or during the press conference, investors
are likely to bring tapering expectations forward and drive Treasury yields upward. Awareness of this risk
is keeping traders parked in the dollar," Schamotta added. 
    In midday trading, the dollar index, which tracks the U.S. currency against six peers, was flat
at 90.912, after dipping to the lowest since March 3 overnight at 90.679.
    The dollar added 0.4% to 108.50 yen, 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
    "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 euro was slightly down at $1.2078, but not far from the two-month high of $1.2117 reached
    The commodity-linked Australian dollar, a barometer of risk appetite, eased 0.4% to US$0.7771,
after a 0.7% rally overnight that took it just shy of a five-week peak. 
    The offshore Chinese yuan retreated 0.1% to 6.4789, after rising to a seven-week top of 6.4710 per
dollar on Monday.
    In cryptocurrencies, bitcoin hit a high of $55,354.59, following a 10% surge on Monday,
driven by reports that JPMorgan Chase is planning to offer a managed bitcoin fund.
    That snapped a five-day losing streak that had taken 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. 
    Currency bid prices at 11:41AM (1541 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
 Dollar index                 90.8990        90.8850     +0.02%         1.020%        +91.0720    +90.8100
 Euro/Dollar                  $1.2078        $1.2087     -0.07%         +0.00%        +$1.2093    +$1.2058
 Dollar/Yen                   108.5400       108.0950    +0.41%         +0.00%        +108.5500   +108.0900
 Euro/Yen                     131.10         130.61      +0.38%         +3.29%        +131.1200   +130.5800
 Dollar/Swiss                 0.9135         0.9141      -0.07%         +0.00%        +0.9171     +0.9124
 Sterling/Dollar              $1.3914        $1.3906     +0.06%         +0.00%        +$1.3924    +$1.3860
 Dollar/Canadian              1.2394         1.2394      +0.01%         +0.00%        +1.2418     +1.2389
 Aussie/Dollar                $0.7773        $0.7802     -0.37%         +0.00%        +$0.7803    +$0.7764
 Euro/Swiss                   1.1031         1.1047      -0.14%         +2.07%        +1.1062     +1.1024
 Euro/Sterling                0.8677         0.8693      -0.18%         -2.91%        +0.8701     +0.8675
 NZ                           $0.7212        $0.7236     -0.31%         +0.00%        +$0.7237    +$0.7202
 Dollar/Norway                8.2785         8.2885      -0.07%         +0.00%        +8.3135     +8.2745
 Euro/Norway                  9.9980         10.0220     -0.24%         -4.48%        +10.0327    +10.0019
 Dollar/Sweden                8.3752         8.3783      -0.10%         +0.00%        +8.4191     +8.3748
 Euro/Sweden                  10.1160        10.1259     -0.10%         +0.00%        +10.1526    +10.1156
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Ritvik Carvalho in London; Editing by Ed
Osmond, Will Dunham, William Maclean)