Investing.com - The dollar slipped lower against the other major currencies on Monday, as investors became more cautious ahead of the Federal Reserve’s highly-anticipated policy meeting this week.
EUR/USD edged up 0.10% to 1.1166, still close to 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.
GBP/USD gained 0.36% to 1.3048, pulling away from Friday’s one-month trough of 1.2992.
USD/JPY slid 0.35% to trade at 101.91, while USD/CHF held steady at 0.9737.
Market participants were also looking ahead to the Bank of Japan’s upcoming policy meeting this week, amid speculation over a possible rate cut further into negative territory.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.73% at 0.7544 and with NZD/USD advancing 0.56% to 0.7307.
Elsewhere, USD/CAD dropped 0.48% to trade at 1.3150.
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 0.27% at 95.80, off Friday’s two-week high of 96.12.