1st LD Writethru: U.S. dollar rises against yen ahead of Fed statement

The U.S. dollar bounced back from a two-week low against the Japanese yen Tuesday as investors were awaiting the release of the Federal Reserve statement.

In the previous session, the safe-haven yen soared 1 percent against the greenback as Chinese stock market slumped 8.5 percent, the worst single-day loss in eight years.

The U.S. dollar resumed the lost territory as market shifted focus to the Fed's monetary policy meeting starting Tuesday.

The U.S. central bank is expected to signal the timing of interest-rate hike this year in its after-meeting statement Wednesday. Recent strong economic reports have been bolstering speculation that the rate-hike may occur by the year-end.

The dollar index, which measures the greenback against six major currencies, was up 0.26 percent at 96.749 in late trading.

In late New York trading, the euro declined to 1.1048 dollars from 1.1097 dollars in the previous session, and the British pound hiked to 1.5601 dollars from 1.5559 U.S. dollars in the previous session. The Australian dollar increased to 0.7326 dollar from 0. 7282 dollar.

The U.S. dollar bought 123.61 Japanese yen, higher than 123.24 yen of the previous session. The U.S. dollar dropped to 0.9630 Swiss franc from 0.9631 Swiss franc and inched down to 1.2933 Canadian dollars from 1.3031 Canadian dollars. Endite