By Rae Wee

SINGAPORE, March 12 (Reuters) - The dollar held broadly steady on Tuesday ahead of key U.S. inflation data due later in the day, while the yen firmed near a one-month high on mounting expectations the Bank of Japan could exit negative interest rates as early as next week.

In cryptocurrencies, bitcoin hovered above $72,000 and was just a whisker away from surpassing a record high made in the previous session.

Against the dollar, the euro retreated from a roughly two-month high hit last week and last bought $1.0931. Sterling rose 0.08% to $1.2822, though was similarly some distance away from Friday's more than seven-month peak.

Currency moves were subdued and the greenback halted its recent decline ahead of a reading on U.S. inflation out later on Tuesday that will provide further clarity on how soon the Federal Reserve could commence its rate easing cycle this year.

While expectations are for core consumer prices to have risen 0.3% on a monthly basis in February, investors will be looking closely for any upward surprises as was the case in January, which could derail the pace of expected Fed rate cuts.

"Were we to get a 0.2%, I think the market will be back on the scent of a possible May first Fed rate cut, and if we were to get a 0.4%, I think the market will be casting some doubt on a cut as early as June," said Ray Attrill, head of FX strategy at National Australia Bank (NAB).

"So in that sense, I think it's right to think that there will be a high degree of market sensitivity to anything other than a 0.3% core print."

The Australian dollar rose 0.01% to $0.6615, while the New Zealand dollar edged 0.02% lower to $0.61685.

The dollar index was little changed at 102.80, having hit a roughly two-month low of 102.33 last week.

The fall in the greenback has come on the back of rising bets the Fed could begin cutting rates by June, particularly after comments from Fed Chair Jerome Powell last week cemented those expectations.

Jobs data released on Friday also showed that underlying labour market conditions in the world's largest economy were softening as the unemployment rate increased to a two-year high of 3.9% in February.

BOJ SHIFT

Over in Asia, swirling speculation that the BOJ could move away from its ultra-easy policy settings at its policy meeting next week kept the yen supported.

Against the dollar, the yen steadied at 146.94, not far from Friday's one-month top of 146.48.

The Japanese currency also rose to a one-month top of 188.01 against the British pound and held near that level on the euro.