* Yen unmoved after BoJ meeting
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (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 lows.
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 =USD , 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 JPY= , 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 expected. 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 EUR=EBS , but not far from the two-month high of $1.2117 reached Monday.
The commodity-linked Australian dollar, a barometer of risk appetite, eased 0.4% to US$0.7771 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% to 6.4789, after rising to a seven-week top of 6.4710 per dollar CNH=EBS on Monday.
In cryptocurrencies, bitcoin BTC=BTSP hit a high of $55,354.59, 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 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
U.S. Close Pct Change
+108.5500 +108.0900 Euro/Yen
+131.1200 +130.5800 Dollar/Swiss
+0.9124 Sterling/Dollar GBP=D3
+$1.3860 Dollar/Canadian CAD=D3
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates
https://tmsnrt.rs/2RBWI5E Federal Open Market Committee projections
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