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Forex - Dollar holds steady vs. euro, yen in quiet trade

Published 03/21/2016, 03:11 AM
© Reuters.  Dollar little changed against yen and euro, no major data ahead
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Investing.com - The dollar was little changed against the euro and the yen in quiet trade on Monday, as no major U.S. economic reports were to be released throughout the day and as the greenback recovered from the Federal Reserve’s latest policy statement.

EUR/USD was steady at 1.1264.

The greenback weakened broadly last week after the Federal Reserve said that it is likely to raise interest rates only twice this year – and not four times, as initially estimated.

Fed policymakers said the U.S. economy faces risks from an uncertain global economy, although moderate growth and "strong job gains" would allow it to tighten policy this year.

The euro came under pressure after European Central Bank Chief Economist Peter Praet said on Friday that euro zone interest rates could go even lower.

USD/JPY was little changed at 111.47.

Markets in Japan were to remain closed for a national holiday.

On Friday, Japanese Finance Minister Taro Aso said that he would closely watch foreign exchange market moves, sparking speculation that the Bank of Japan had intervened in currency markets.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.13% at 95.18, off Friday’s five-month low of 94.61.

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