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Dollar flat on euro ahead of two-day Fed meeting

The US dollar was flat against the euro but slipped against the yen Monday ahead of the Federal Reserve's two-day meeting, with the market looking for signals of possible early monetary tightening in the US.

At 2200 GMT the euro was at $1.3454 compared to $1.3457 late Friday.

The dollar bought 90.82 yen against 90.87 late Friday, while the euro slipped to 122.20 yen from 122.28 yen.

David Song of DailyFx said there were signs of an increasing number of officials on the Fed's policy-setting Federal Open Market Committee scaling back their dovish tone on monetary policy as the economy appears to strengthen.

"The FOMC may look to conclude its easing cycle in 2013 as growth and inflation picks up," Song said.

"In turn, a more neutral policy statement from the Fed should prompt a rally in the USD, and the bullish sentiment surrounding the greenback may gather pace throughout the year as central bank officials see limited scope to expand the balance sheet further."

Nick Bennenbroek of Wells Fargo said the slight change between the dollar and the yen represented as well the pause of buying interest on the European currency after its strong gains since December.

The British pound fell again, to $1.5692 from $1.5794, while the dollar drifted to 0.9259 Swiss francs from 0.9264 francs.