The dollar eased against most Group-of-10 peers as Treasury yields slipped, with the media blackout ahead of the Federal Open Market Committee meeting underway.

The Bloomberg Dollar Spot Index fell 0.1% to take losses into a third day. The yen extended gains made after initial buying over the Tokyo fix. New Zealand's dollar climbed thanks to rebalancing flows against the greenback and Aussie, according to Asia-based FX traders, ahead of consumer-price-index data due Wednesday.

The yield on the five-year Treasury note lost one basis point to 4.04% following a drop in consumer inflation expectations Friday and after rising for four days. Federal Reserve Bank of San Francisco President Mary Daly said it's "premature" to think interest-rate cuts are around the corner.

"US yields are in retreat following the drop in consumer inflation expectations in the University of Michigan survey, and this is weighing on the USD," said David Forrester, a senior FX strategist at Credit Agricole CIB in Singapore.

USD/JPY down 0.1% to 147.93.

"While the market expectation is for the BOJ to leave its YCC and policy rate unchanged tomorrow, we see some risks for the JPY around the meeting outcome," said CA's Forrester.

AUD/USD steady at 0.6599.

NZD/USD gains 0.3% to 0.6130.

Source : Bloomberg