FOREX-Dollar holds firm in cautious trading before Fed meets

    * Graphic: World FX rates

    By Kevin Buckland
    TOKYO, March 16 (Reuters) - The U.S. 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 U.S.
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
    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 signalled in normalising policy.
    "Markets (are) essentially marking time ahead of the FOMC
meeting," which is "keeping investors a little bit cautious,"
National Australia Bank foreign-exchange strategist Rodrigo
Catril wrote in a client note.
    "There is a lot of focus on whether the new forecasts and
dots plot will vindicate the current lift in Fed hike
    The benchmark 10-year Treasury yield, which
reached 1.6420% at the end of last week, was last at 1.6073%.
    The dollar was little changed at 109.170 yen early in
Tuesday's Asian session, after rising as high as 109.365
overnight. The BOJ begins a two-day policy meeting on Thursday,
along with an extensive policy review.
    The euro was largely flat at $1.19255, languishing below
$1.20 since March 5. Europe's vaccine rollout has been hampered
by the suspension of AstraZeneca PLC shots in Germany,
France and other nations amid concerns about possible serious
side effects.
    Bitcoin, meanwhile, slipped further to around $54,782 on
Tuesday, following its jump to a record $61,781.83 on Saturday.

    Currency bid prices at 047 GMT
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar                  $1.1927        $1.1929     -0.03%         -2.39%      +1.1937     +1.1924
 Dollar/Yen                   109.1770       109.1200    +0.00%         +5.64%      +109.2050   +0.0000
 Euro/Yen                     130.21         130.16      +0.04%         +2.59%      +130.3900   +130.1400
 Dollar/Swiss                 0.9277         0.9275      +0.02%         +4.86%      +0.9278     +0.9275
 Sterling/Dollar              1.3888         1.3900      -0.06%         +1.68%      +1.3902     +1.3890
 Dollar/Canadian              1.2477         1.2473      +0.05%         -2.00%      +1.2480     +1.2468
 Aussie/Dollar                0.7744         0.7756      -0.13%         +0.69%      +0.7755     +0.7742
 NZ                           0.7198         0.7200      +0.07%         +0.33%      +0.7204     +0.7200
 Dollar/Dollar All spots
Tokyo spots
Europe spots 
Tokyo Forex market info from BOJ   

 (Reporting by Kevin Buckland; Editing by Christopher Cushing)