FOREX-Dollar near multi-week lows before Fed, bitcoin reclaims $54,000

    * Graphic: World FX rates

    By Kevin Buckland
    TOKYO, April 27 (Reuters) - The dollar hovered near
multi-week lows versus major peers on Tuesday, weighed by
subdued Treasury yields, as investors consolidated positions
ahead of the Federal Reserve's policy decision this week.
    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
    In cryptocurrencies, bitcoin traded around
$54,000 following a 10% surge on Monday, driven by reports that
JPMorgan Chase is planning to offer a managed bitcoin
    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.
    The dollar index, which tracks the U.S. currency
against six peers, was little changed at 90.859 early in the
Asian session, after dipping to the lowest since March 3
overnight at 90.679.
    No change to policy is expected when the Federal Open Market
Committee ends its two-day meeting on Wednesday, but the market
will pay close attention to comments from 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 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 $1.2078, but remained
close to the one-month high of $1.2117 reached Monday.
    The commodity-linked Australian dollar, a barometer of risk
appetite, eased 0.1% to $0.7791, 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 on Monday.
    The dollar added 0.1% to 108.18 yen, another haven
currency, continuing its rise from the seven-week low of 107.48
reached Friday.
    The Bank of Japan announces a policy decision Tuesday, with
no change expected.
    Currency bid prices at 0108 GMT
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar                  $1.2076        $1.2087     -0.08%         -1.16%      +1.2090     +1.2075
 Dollar/Yen                   108.1570       108.1400    +0.06%         +4.75%      +108.2100   +108.1800
 Euro/Yen         <EURJPY=EB  130.63         130.61      +0.02%         +2.92%      +130.7600   +130.5800
 Dollar/Swiss                 0.9147         0.9141      +0.08%         +3.40%      +0.9148     +0.9145
 Sterling/Dollar              1.3887         1.3906      -0.10%         +1.68%      +1.3900     +1.3888
 Dollar/Canadian              1.2398         1.2394      +0.03%         -2.64%      +1.2401     +1.2389
 Aussie/Dollar                0.7789         0.7802      -0.17%         +1.25%      +0.7802     +0.7789
 NZ                           0.7226         0.7236      -0.08%         +0.68%      +0.7236     +0.7227
 Dollar/Dollar All spots
Tokyo spots
Europe spots 
Tokyo Forex market info from BOJ 

 (Reporting by Kevin Buckland; Editing by Sam Holmes)