2017.09.1903:49:00UTC+00Dollar Steady as Investors Await Fed Statement

The U.S. dollar was steady on Tuesday, as investors await the Federal Reserve's policy statement this week for new signs on the potential pace and timing of further U.S. monetary tightening.

The dollar index, which tracks the greenback against a basket of six major rivals, edged 0.1 percent lower to 91.928.

The greenback gained 0.2 percent against the Japanese yen, its highest since late July.

The euro rose 0.2 percent at $1.1980, poised for its fourth consecutive days of gains, although modest ones.

The dollar has benefited from a recent jump in U.S. bond yields. The benchmark 10-year note yield reached a one-month peak of 2.237 percent overnight.

That marked an increase of 22 basis points from 10-month lows set on Sept. 8, when U.S. bond yields dropped on risk aversion, partly coming from concerns about U.S.-North Korea tensions.

The Fed is widely expected to announce this week that it will begin trimming its balance sheet, with the reductions seen likely to start this year. It is expected to keep rates on hold, but investors will be watching for new signs on the likelihood of another rate hike in 2017 and how many could be expected next year.