Dollar rangebound in Asia ahead of policy meetings

The dollar traded in a tight range against the yen in Asia on Tuesday as market players waited for the outcome of meetings by Japanese and US central bankers.The dollar fetched 82.37 yen in Tokyo morning trade, compared with 82.32 yen in New York late Monday.Rates hardly changed after Japanese Finance Minister Jun Azumi said Tokyo had won approval from Beijing to buy Chinese government bonds, worth $10.3 billion, for the first time.The euro edged up to $1.3166 and 108.44 yen from $1.3147 and 108.22 yen as worries over eurozone debt temporarily receded after Greece won a second bailout and Spain was granted concessions in its bid to shrink its debt load.Policymakers at the Bank of Japan are to wrap up a two-day meeting Tuesday and the Federal Reserve will hold a one-day meeting later in the day.US stocks finished mixed Monday ahead of the Fed policy board meeting that analysts hope will give a clearer picture of the US economys direction and signs of a firm recovery.The BoJ surprised the market in February by announcing it would pump 10 trillion yen ($122 billion) more into its ailing economy, the latest push to combat stubborn deflation as domestic and global uncertainty intensifies.The move helped boost the dollar, which was in the 77-yen range before the announcement.While the BoJ is expected to announce no new easing action following its policy meeting, bank governor Masaaki Shirakawa may signal that the bank is ready to loosen its credit grip again in the near term, said Junya Tanase, chief forex strategist at JPMorgan in Tokyo.Shirakawa will hold a press briefing at 0630 GMT on Tuesday.The dollar/yen may take a hit from disappointed overseas investors who are expecting some action today, Tanase told Dow Jones Newswires.A senior trader at a major bank in Tokyo said that while the dollar may dip against the yen if no additional measures are introduced, it could rally if there are signs of further easing.