* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Focus is on Fed meeting ending Wednesday
* Treasury yields and dollar likely to fall on Fed stance
* Euro bid on improving economic data
* Turkish lira at risk of testing all-time low
By Stanley White
TOKYO, April 26 (Reuters) - The dollar nursed losses against most currencies on Monday amid speculation that U.S. Federal Reserve Chairman Jerome Powell will shun talk of tapering bond purchases at a policy meeting this week.
The euro rose to a near two-month high against the greenback before data later on Monday forecast to show an improvement in German business sentiment, which would bolster hopes for a brighter economic outlook.
Powell is likely to face questions over whether an improving labour market and rising coronavirus vaccinations warrant a withdrawal of monetary easing, but most analysts expect him to say such talk is premature, which would put downward pressure on Treasury yields and the dollar.
"The dollar is likely to continue to trend lower in line with the gathering momentum in the world economy," analysts at Commonwealth Bank of Australia wrote in a research note.
"We expect the Fed policy meeting to be a non-event for the dollar. The U.S. economy is a long way from meeting the 'substantial further progress' threshold for the Fed to taper its asset purchases."
The dollar stood at 107.88 yen JPY=D3 , close to its lowest since March 4.
The euro EUR=D3 rose to $1.2105, adding to gains made on Friday after positive data on European services and manufacturing activity. survey from Germany's Ifo institute due later on Monday is expected to show business conditions continued to improve in Europe's largest economy.
The British pound GBP=D3 was quoted at $1.3876 following a 0.3% gain in the previous session.
The dollar was little changed at 0.9136 Swiss franc CHF=EBS , close to a two-month low.
The Fed's next meeting ends on Wednesday, and while no major policy changes are expected, investors will pay close attention to Powell's comments after the meeting.
Rising coronavirus vaccination rates and an improving economic outlook are reasons to be optimistic, but many traders and analysts say Powell is likely to reiterate his commitment to keep easy policy in place for an extended period.
U.S. funds have been selling the dollar against the yen recently in Asian trading, which is an additional sign that major investors expect lower U.S. Treasury yields to push the dollar lower, some traders in Tokyo said.
Speculators' net bearish bets on the dollar have risen to a three-week high, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data, also pointing to further declines for the greenback. emerging markets, traders are watching the Turkish lira TRYTOM=D3 to see if it will test its all-time low of 8.58 per dollar due to worsening relations with the United States and worries about a dovish central bank governor. The lira was last quoted at 8.4325.
Elsewhere, the Australian AUD=D3 and New Zealand dollars NZD=D3 traded near one-month highs but are likely to track moves in global commodity prices, traders said.
In the cryptocurrency market, Bitcoin BTC=BTSP reclaimed the $50,000 mark and smaller rival Ether ETH=BTSP rose, recouping some of their losses from last week triggered by U.S. President Joe Biden's plan to raise capital gains taxes for wealthy investors. bid prices at 0027 GMT Description
U.S. Close Pct Change
+107.9350 +107.8600 Euro/Yen
130.46 +0.04% +2.81% +130.5600 +130.3800 S> Dollar/Swiss CHF=EBS 0.9136 0.9137 -0.03% +3.24% +0.9140 +0.9134 Sterling/Dollar GBP=D3 1.3876 1.3881 -0.05% +1.55% +1.3879 +1.3872 Dollar/Canadian CAD=D3 1.2469 1.2475 -0.03% -2.07% +1.2490 +1.2471 Aussie/Dollar AUD=D3 0.7752 0.7746 +0.08% +0.77% +0.7753 +0.7735 NZ NZD=D3 0.7197 0.7195 +0.03% +0.22% +0.7199 +0.7191 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 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
+0.9134 Sterling/Dollar GBP=D3
+1.3872 Dollar/Canadian CAD=D3
All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates
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