Investing.com The dollar edged lower against the other major currencies on Monday, as investors continued to digest the Federal Reserve's latest policy move and as trading volumes were expected to remain thin ahead of the Christmas Holiday.
EUR/USD eased up 0.09% to 1.0875.
The U.S. dollar weakened on Friday, one day after rising to a two-week high as markets continued to digest the Fed's decision to raise interest rates for the first time in nearly a decade.
The Fed hiked interest rates by a quarter of a percentage point to a range between 0.25% and 0.5% in a widely expected move.
Commenting on the decision, Fed Chair Janet Yellen said the FOMC will not be mechanical in its approach to normalize monetary policy and that future rate hikes would be gradual and data dependent.
USD/JPY added 0.18% to trade at 121.36.
The yen remained under pressure after the Bank of Japan on Friday kept its main monetary stimulus target unchanged at ¥80 trillion Friday, but decided to extend the maturity of the Japanese government bonds it purchases from 10 to 12 years and set up a ¥300 billion fund to buy exchange-traded funds.
The yen initially strengthened following the announcement, but quickly moved lower as analysts said that the BoJ's easing move was minor and did not amount to a significant change to its stimulus.
The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.09% at 98.65.