The dollar gained against the yen before the outcome of the Federal Reserve’s meeting to review its policy of debt purchases to bolster the U.S. economy.

The U.S. currency erased declines, including touching a three-week low against the euro, as Treasury yields increased after U.S. retail sales rose more than forecast during November, a sign consumers will play a bigger role in the economic recovery. The Swiss franc strengthened after the government raised its economic growth forecast for 2011. The Federal Open Market Committee will issue a policy statement at 2:15 p.m. New York time.

“My expectation for the Fed is they are going to do their best in their statement to talk rates lower again and probably going to firm up their commitment to pursuing their full allotment of the $600 billion asset purchases,” said Brian Dolan, chief strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey. “That potentially could drive down yields and limit dollar/yen and put it back under pressure.”