TOKYO, Oct 24 Reuters The dollar softened against a basket of currencies on Tuesday, mirroring a dip in Treasuries yields as investors awaited key U.S. economic data before the Federal Reserve39;s monetary policy meeting next week.

Bitcoin charged back into the market spotlight with the virtual currency soaring on speculation that the United States could soon approve a bitcoin exchangetraded fund.

The dollar index last sat around 105.47, having lost over 0.5 in the previous session and slipped to its lowest in about a month as U.S. Treasury yields tumbled.

The greenback found support last week after Fed Chair Jerome Powell said U.S. economic strength might warrant tighter financial conditions, which pushed the benchmark 10year yield above 5 to its highest since July 2007.

The large swing in yields comes as global uncertainty and growing geopolitical risks have markets on edge, with tensions high in the Middle East since Hamas39; Oct. 7 attack on southern Israel.

Market attention next turns to some of the last bits of U.S. economic data before the Fed39;s meeting on Oct. 31 Nov. 1, with the flash purchasing managers39; index PMI out on Tuesday, and gross domestic product as well as another inflation report due later in the week.

The PMI data could set the market expectations ahead of the GDP report, said Matt Simpson, senior market analyst at City Index.

If the data leans far enough one way it could prompt a strong dollar rally or breakdown with the Fed in a…