Major currencies came to a standstill on Tuesday as forex investors wait for the outcomes from this week's policy meetings of the Bank of Japan and Federal Reserve, with speculation rife that the Japanese central bank will make important changes to its easing program.
The dollar slipped to 101.55, about half a percentage point lower than late last week though it remained well confined within its trading range of the past weeks between 101.20 and 103.35.
Despite the overwhelming consensus for the Fed to hold rates steady this week, some market participants expect it to drop a clearer hint that it is ready to raise rates.
That should lift the dollar broadly at a time when most other central banks in the world remain in an easing cycle.
Early on Tuesday trade, the dollar's index against a basket of six major currencies fell to 95.938 from Friday's two-week high of 96.108.
EUR/USD firmed above 1.1200, from Monday's low of 1.1149, which was its lowest level in almost two weeks.
GBP/USD rose to 1.3064, slowly recovering from one-month low of 1.2996 touched last week after the Bank of England left the door open to a further cut in interest rates by the end of the year.
