The yen nursed losses on Tuesday as traders walked back expectations for a Japan rate hike, while the dollar was waiting on U.S. inflation data and a slew of central bank meetings.

The dollar rose about 0.9% on the yen overnight . At 145.96 yen it is about 3% above a low touched last week after remarks on the challenging outlook from Bank of Japan Governor Kazuo Ueda were taken as a hint that a policy shift was imminent.

Bloomberg reported on Monday, citing sources, that BOJ officials see little need to rush out of negative rates, triggering a reversal of the yen's rally and gains in Japan's stock and government bond markets.

Other currency pairs were broadly steady with the euro at $1.0765 as the market focus turns on U.S. inflation data, due at 1330 GMT, and beyond it to Wednesday's Federal Reserve policy decision.

Sterling held at $1.2555. The Australian dollar , floated four decades ago on Tuesday, was kept to $0.6564 and the New Zealand dollar to $0.6122.

The dollar has been sliding since October's benign U.S. inflation report but found a footing on upbeat jobs data published on Friday. The Fed is considered certain to hold rates at 5.25%-5.50% this week, putting the focus on the so-called dot plots for rates and Chair Jerome Powell's press conference.

Expectations for a March cut have ebbed, though May is seen as a better-than 3/4 chance.

Economists polled by Reuters expect headline inflation to have been flat for November, and core inflation to keep steady at an annual pace of 4% - well above the Fed's 2% target.

The European Central Bank, Bank of England, Norges Bank and the Swiss National Bank then all meet on Thursday, with Norway the only one considered a possible hiker. There is also a risk the SNB dial back its support for the franc in FX markets.

Source : Reuters