Dollar steadies

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TOKYO: The dollar steadied against the euro and yen on Monday following last week's large swings, as the market braced for Japanese and U.S. central bank policy meetings that could provide investors with fresh incentive.

The euro was little changed at $1.1156, not far from a one-month high of $1.1218 set on Thursday when it soared after the European Central Bank eased extensively but also signaled that it may limit future interest rate cuts.

The dollar was nearly flat at 113.93 yen having gained 0.6 percent on Friday.

An improvement in risk appetite on the back of rising equities and crude oil had lifted the greenback from a low of 112.225 to as high as 114.45 versus the safe-haven yen last week.

The Bank of Japan, fresh from adopting negative interest rates in January, is expected to stand pat when its two-day meeting ends on Tuesday.

The market will still sift through the BOJ's policy statements for any hints that it may be losing confidence in negative rates after the ECB suggested it will have to be cautious on cutting rates ever deeper into negative territory.