The euro clung to gains on Tuesday following hawkish comments from European Central Bank (ECB) policymakers, while the yen languished near a 10-month low ahead of a key rate decision from the Bank of Japan (BOJ) later in the week.

Currency moves were subdued in early Asia trade as markets stayed on guard ahead of this week's slew of central bank meetings, with the Federal Reserve taking centre stage and the BOJ grabbing the spotlight in Asia.

The euro eked out a slight gain to trade at $1.0695, having risen 0.3% in the previous session as ECB officials suggested further rate increases were on the cards - comments which boosted euro zone government bond yields.

In Asia, the yen slipped marginally to 147.64 per dollar and was kept pinned near last week's 10-month low of 147.95 per dollar.

Elsewhere, the U.S. dollar edged broadly lower, though strayed not too far from a six-month peak hit against its major peers last week ahead of the Fed's interest rate decision on Wednesday.

Against the greenback, the Aussie rose 0.12% to $0.6445, while the New Zealand dollar gained 0.11% to $0.5924. The dollar index slipped 0.04% to 105.04.

Source : Reuters