Tokyo - The dollar was little moved against the euro and yen on Tuesday as investors await the US Federal Reserve's latest policy meeting as the bank's head faces calls to hike interest rates earlier than she has indicated.

The greenback stood at 101.88 yen in Tokyo, compared with 101.85 yen in New York on Monday.

The euro bought $1.3434 and 136.90 yen, against $1.3438 and 136.87 yen in New York.

Fed board members kick off their meeting on Wednesday and while they are expected to keep rates at record lows and further cut their stimulus programme investors are hoping for an indication that monetary policy could be tightened soon.

With the economy getting back on track, Janet Yellen is facing growing calls to take a more hawkish stance to quell what some analysts warn are overheated asset markets and bubbles in some sectors.

More economists suggest say the Fed bring forward its plan to lift interest rates to the end of this year, instead of late 2015 as previously indicated.

Richard Fisher, the hawkish head of the Federal Reserve's Dallas branch, said in a newspaper piece on Sunday that the country is experiencing financial excess that is “of our own making”.

The meeting comes just ahead of the release of key US data, including on second quarter growth and job creation, with investors deciding against making any big moves beforehand.

The continued tension in Ukraine continues to pressure the euro as the West moves to impose further sanctions on Russia over its support of anti-Kiev rebels who have been accused of shooting down a Malaysian passenger jet this month.

“The market is watching closely” the economic sanctions, Shinji Kureda, head of FX trading group at Sumitomo Mitsui Banking Corp, told Dow Jones Newswires.

The euro has sunk to multi-month lows against the dollar and yen owing to fears over the impact on the eurozone economy of fresh sanctions against Russia, a key supplier of energy to the region. - AFP