Investing.com - The dollar slid lower against the other major currencies on Monday as investors looked ahead to the outcome of the Federal Reserve’s upcoming policy meeting later in the week.
USD/JPY was last down 0.30% to 107.81, not far from session lows of 107.75.
Investors were awaiting the conclusion of the Fed’s two day meeting on Wednesday for any indications that a slowdown in growth in Europe or China could prompt the U.S. central bank to delay possible rate hikes.
The Fed was widely expected to wind up its asset purchasing stimulus program, known as quantitative easing.
Sentiment on the greenback was also hit after data showed that the U.S. service sector expanded at the slowest rate in six months in October as new order growth slowed and business confidence declined.
Research firm Markit said it's U.S. services purchasing managers' index ticked down to 57.3 this month, from 58.9 in September.
A separate report showed that U.S. pending homes sales rose just 0.3% in September, missing forecasts for a 0.5% gain.
EUR/USD was up 0.09% to 1.2680. The single currency’s gains were held in check after a report showed that German business confidence fell to the lowest level in nearly two years this month.
German research institute Ifo said its index of business climate slid to 103.2 this month from 104.7 in September. It was the lowest level since December 2012 and was below forecasts of 104.3.
German firms reported that they are gloomier about current conditions and future prospects than last month, fuelling fears over the outlook for fourth quarter growth.
The single currency rose above 1.27 against the dollar earlier after results of stress tests on Europe’s largest banks showed that most of the region’s top lenders have enough capital to survive another financial crisis.
The European Central Bank announced the results of yearlong tests to assess the finances of 150 banks on Sunday. A total of 25 banks were found to have a capital shortfall, but most have already taken steps to resolve this, the ECB said.
Elsewhere, the dollar was slightly lower against the pound, with GBP/USD rising 0.17% to 1.6109, while USD/CHF dipped 0.08% to 0.9510.
The New Zealand dollar pushed higher, with NZD/USD adding 0.24% to trade at 0.7873, but gains were limited as risk appetite remained muted.
AUD/USD was little changed at 0.8792, while USD/CAD edged up 0.10% to 1.1251.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, was down 0.25% to 85.73.