* FOMC meeting in focus for tightening hints, due 1915 GMT
* Dollar holds gains across board after stronger inflation
By Charlotte Cooper
TOKYO, Dec 16 (Reuters) - The dollar held near a 2-½ month high on the euro and kept a firmer footing against the yen on Wednesday as the market waited to see if the U.S. Federal Reserve would give any signal on when interest rates might begin to rise.
While no change in rates is expected, the language of the Federal Open Market Committee (FOMC) statement at 1915 GMT will be scrutinised after improving economic data has raised speculation that tightening may come sooner than previously expected, helping to lift the dollar.
The Fed has said rates are likely to remain very low for an extended period and any hints to the contrary would increase the dollar's appeal by raising the return on dollar-denominated assets.
Analysts say, however, that while the FOMC meeting may show Fed officials are becoming more upbeat about the economy, they are unlikely to overturn that commitment to keep rates low.
"There could be more constructive language on the business outlook in the last FOMC meeting (of the year) but we don't think they will ease off of the lower-for-longer stance," UBS analysts wrote in a research note.
The euro held steady at $1.4525 in early Asian trade, after falling nearly 1 percent the previous day and hitting $1.4503, its lowest since early October.
The single currency fell on Tuesday on euro zone bank concerns and data suggesting growth in the region remained weak.
The dollar, which rose more than 1 percent against the yen the day before, eased slightly to 89.52 yen but retained most of the previous session's gains.
The dollar index, a measure of its performance against six major currencies, was holding just below Tuesday's two-month at 77.092.
Data on Tuesday showed U.S. producer prices rose 1.8 percent last month, the largest gain in three months. That pushed up U.S. bond yields and came on the heels of stronger U.S. employment and consumer spending data.
However, Fed Chairman Ben Bernanke, in a response to a lawmaker's questions made public on Tuesday, said the economy was operating so far beneath its potential that inflation was unlikely to become a problem.
Australia releases its third-quarter gross domestic product data at 0030 GMT, with forecasts for the economy to expand 0.4 percent from the second quarter.
The Australian dollar was little changed from late U.S. trade at $0.9059 after shedding more than 1 percent on Tuesday. (Editing by Chris Gallagher)