* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
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 pandemic.
In cryptocurrencies, bitcoin BTC=BTSP traded around $54,000 following a 10% surge on Monday, driven by reports that JPMorgan Chase (NYSE:JPM) JPM.N is planning to offer a managed bitcoin fund. 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 =USD , 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 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 $1.2078 EUR=EBS , 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 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.
The dollar added 0.1% to 108.18 yen JPY=EBS , 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. bid prices at 0108 GMT Description
RIC
Last
U.S. Close Pct Change
YTD Pct
High Bid
Low Bid
Previous
Change
Session
Euro/Dollar
EUR=EBS
$1.2076
$1.2087
-0.08%
-1.16%
+1.2090
+1.2075 Dollar/Yen
JPY=EBS
108.1570
108.1400
+0.06%
+4.75%
+108.2100 +108.1800 Euro/Yen
130.61 +0.02% +2.92% +130.7600 +130.5800 S> Dollar/Swiss 0.9147 0.9141 +0.08% +3.40% +0.9148 +0.9145 Sterling/Dollar GBP=D3 1.3887 1.3906 -0.10% +1.68% +1.3900 +1.3888 Dollar/Canadian CAD=D3 1.2398 1.2394 +0.03% -2.64% +1.2401 +1.2389 Aussie/Dollar AUD=D3 0.7789 0.7802 -0.17% +1.25% +0.7802 +0.7789 NZ NZD=D3 0.7226 0.7236 -0.08% +0.68% +0.7236 +0.7227 Dollar/Dollar All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates https://tmsnrt.rs/2RBWI5E ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>