The dollar edged lower against the Japanese yen on Monday, as investors awaited a policy decision at the conclusion of the Bank of Japan's two-day meeting on Tuesday that could mark a change to its monetary easing policy.
The dollar was 0.07percent lower against the yen at 110.95 yen.
"I think there is some nervousness ahead of tomorrow's results of the BoJ meeting," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York.
The BoJ will consider changes to its massive stimulus program to make it more sustainable, such as allowing greater swings in interest rates and widening its stock-buying selection, Reuters reported last week, citing people familiar with the central bank's thinking.
The changes, although small, would be the first since 2016 and the latest sign Governor Haruhiko Kuroda is gradually walking away from his radical stimulus program deployed five years ago to shock the public out of a sticky deflationary mindset.
"Even if they tell us they are talking about making changes, that is likely to be enough for the market to try and take JPY stronger," Brad Bechtel, managing director, at Jefferies in New York, said in a client note.