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The dollar drifted above multi-month lows on Tuesday, while the yen was perched near seven-month highs as investors held their breath for a potential policy shift at the Bank of Japan.
The euro, which reached a nine-month high on Monday at $1.0874, was last loitering around $1.0825.
The yen hit a top of 127.22 per dollar during Asia hours on Monday, before steadying around 128.69 on Tuesday. Options trade shows a market braced for sharp moves when the Bank of Japan (BOJ) concludes a two-day meeting on Wednesday, with overnight implied volatility surging to a six-year high.
