* BOJ considers boosting cap on 10-year yield -Nikkei
* Focus on central bank meetings - BOJ, BOE, Fed
* U.S. refunding, nonfarm payrolls also a key focus this week

By Gertrude Chavez-Dreyfuss
       NEW YORK, Oct 30 (Reuters) - The Japanese yen climbed to a two-week peak against the dollar on
Monday after a report said the Bank of Japan is considering tweaking its yield curve control policy to allow
the 10-year Japanese government bond yield to rise above 1%.
    The Nikkei report pushed the yen to 148.81 per dollar, its strongest level since Oct. 17. The greenback,
which has been on the defensive all day, was last down 0.4% at 149.05 yen.
    Surging global interest rates have heightened pressure on the BOJ, which kicked off its two-day monetary
policy meeting on Monday, to change its bond yield control policy, in which it maintains its -0.1%
short-term interest rate target and a 0% cap on the 10-year bond yield. 
    "If the BOJ does not do anything tomorrow, which I think that's what economists expect and just wait
until December, I think the dollar jumps right back versus the yen," said Marc Chandler, chief market
strategist at Bannockburn Global Forex in New York.
    But with Monday's action, Chandler thinks Japanese intervention seems unlikely, although he noted that
in the last few weeks, the BOJ has intervened in the bond market as an alternative.
    "The key to intervention is excessive volatility and the BOJ has been saying this: that it's not
targeting a particular level. So that's taking the magic away from the 150 mark," he said.
    Aside from the BOJ, market participants are looking ahead to interest rate decisions from the U.S.
Federal Reserve and the Bank of England (BoE).
    A deluge of purchasing managers' surveys, euro zone inflation and GDP data, and U.S. nonfarm payrolls
are also due for release this week.
    "The U.S. dollar is sliding a little this morning, but not in any measure that puts it trading outside
recent ranges," said Helen Given, FX trader at Monex USA in Washington. 
    "If consumer data domestically hadn't been so strong last week, we'd probably be looking at a bigger
slide for the dollar, but markets are still finding it quite difficult to discount the resilience of the
U.S. economy."
    Analysts also pointed to the U.S. Treasury's quarterly refunding announcement on Wednesday that could
move both the bond and currency markets.
    That comes as mounting deficits and a heavier interest rate burden have substantially increased the U.S.
Treasury's funding needs. Since the last announcement in August, borrowing rates have spiralled to their
highest since 2006-07.
    The dollar index was last down 0.4% at 106.13, after earlier falling to a one-week low of 106.06,
hurt by a pick-up in the euro. The euro was last up 0.5% at $1.0615. 
    In the mix in Europe on Monday was cooling German state inflation data, which pointed to slowing
headline inflation in the euro zone's largest economy, and a separate release showing German gross domestic
product fell by 0.1% quarter on quarter in the third quarter, though this was above expectations. 
    Later this week, the Fed and BoE are both expected to keep rates steady so, barring any surprises, the
focus will be on the message from policymakers.
    The pound was up 0.2% at $1.2141. 
    U.S. nonfarm payrolls data on Friday will also be important for expectations of the Fed's rate hike
path. Wall Street economists are expecting new U.S. jobs of 188,000 for the month of October, according to
the Reuters poll.
    
    ========================================================
    Currency bid prices at 2:24PM (1824 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
                                              Session                                             
 Dollar index                 106.1200       106.6000    -0.43%         2.541%        +106.7100   +106.0600
 Euro/Dollar                  $1.0614        $1.0565     +0.46%         -0.94%        +$1.0625    +$1.0547
 Dollar/Yen                   148.9650       149.6500    -0.44%         +13.64%       +149.8450   +148.8100
 Euro/Yen                     158.11         158.10      +0.01%         +12.69%       +158.9200   +157.7000
 Dollar/Swiss                 0.9018         0.9021      -0.03%         -2.47%        +0.9048     +0.9010
 Sterling/Dollar              $1.2158        $1.2123     +0.31%         +0.55%        +$1.2164    +$1.2090
 Dollar/Canadian              1.3830         1.3872      -0.30%         +2.07%        +1.3872     +1.3814
 Aussie/Dollar                $0.6374        $0.6334     +0.67%         -6.45%        +$0.6384    +$0.6333
 Euro/Swiss                   0.9570         0.9535      +0.37%         -3.28%        +0.9583     +0.9526
 Euro/Sterling                0.8727         0.8713      +0.16%         -1.32%        +0.8740     +0.8708
 NZ                           $0.5837        $0.5809     +0.45%         -8.10%        +$0.5844    +$0.5805
 Dollar/Dollar                                                                                    
 Dollar/Norway                11.1410        11.1820     -0.24%         +13.66%       +11.1880    +11.1070
 Euro/Norway                  11.8270        11.8024     +0.21%         +12.73%       +11.8504    +11.7805
 Dollar/Sweden                11.1385        11.1478     +0.59%         +7.02%        +11.1798    +11.1179
 Euro/Sweden                  11.8182        11.7487     +0.59%         +6.00%        +11.8377    +11.7729
 
    
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Alun John in London and Rae Wee in
Singapore; Editing by Miral Fahmy, Mark Potter, Andrea Ricci and Alexander Smith)