Dollar gains for fifth session ahead of Fed meeting
Stocks tread water before Fed announcement at 1800 GMT
Yen hits 4month low a day after BOJ ends negative rates
Benchmark bond yields dip from recent peaks
Oil weakens, gold sags from record high

NEW YORKLONDON, March 20 Reuters The dollar rose for a fifth straight session on Wednesday, while stock and bond markets treaded water as traders braced for what could be a crucial Federal Reserve meeting later in the day.

Japan39;s yen was at a fourmonth low a day after the Bank of Japan finally ditched its subzero rates, but the focus was already on whether the Fed signals two U.S. rate cuts are now likely this year rather than the three markets have been hoping for.

Its quandary is whether progress on inflation has stalled and, if so, whether U.S. rates which drive the global cost of borrowing need to stay in the current 5.005.25 range longer than many including investors, consumers, politicians and U.S. central bank officials themselves had expected.

We expect rates to remain unchanged and for the communication to reiterate that greater confidence that inflation is moving back to the target level is needed before it would be appropriate to reduce the target range, said Henk Potts, a market strategist at Barclays Private Bank.

In our view, we see scope for the Fed to start cutting rates in June, however, the path of policy still remains very datadependent.

Stocks on Wall Street were little changed as investors…