Investing.com - The dollar extended losses against the other major currencies on Monday, as investors became more cautious ahead of the Federal Reserve and the Bank of Japan’s highly-anticipated policy meetings this week.
EUR/USD gained 0.36% to 1.1195, off Friday’s nearly two-week low of 1.1145.
The greenback had strengthened after data on Friday showed that U.S. consumer prices rose 0.2% in August, compared to expectations for a 0.1% gain. Year-over-year, consumer prices increased 1.1%, above expectations for a gain of 1.0%.
The strong data sparked fresh speculation over a potential U.S. rate hike this month, ahead of the Fed’s policy statement due on Wednesday.
GBP/USD climbed 0.53% to 1.3070, pulling away from Friday’s one-month trough of 1.2992.
USD/JPY declined 0.59% to trade at 101.68, while USD/CHF slipped 0.15% to 0.9788.
Market participants were also looking ahead to the BoJ’s upcoming policy meeting this week, amid speculation over a possible rate cut further into negative territory.
The Australian and New Zealand dollars pushed higher, with AUD/USD up 1.08% at 0.7570 and with NZD/USD advancing 0.78% to 0.7324.
Elsewhere, USD/CAD dropped 0.32% to trade at 1.3171.
The commodity currencies were supported by a rebound in oil prices on Monday, after Venezuela said OPEC and non-OPEC producers were close to reaching an output stabilizing deal.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.46% at 95.61, pulling away from Friday’s two-week high of 96.12.