Investing.com - The dollar fell against the other major currencies on Monday as traders looked ahead to central bank meetings in the U.S. and Japan later in the week.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.29% to 95.79, off Friday’s two-week highs of 96.12.
Recent lackluster economic reports have underlined the view that the Federal Reserve will leave interest rates unchanged at its next meeting, which is scheduled for September 20-21.
Fed Governor Lael Brainard said last week that the case to tighten monetary policy in the coming months is less compelling.
The Fed raised interest rates for the first time in almost a decade in December.
Expectations of higher interest rates typically boost the dollar by making it more attractive to yield seeking investors.
The dollar was weaker against the yen, with USD/JPY down 0.49% at 101.76.
The yen was boosted by expectations that the Bank of Japan will hold off on unveiling fresh stimulus measures at this week’s meeting.
The euro edged higher, with EUR/USD inching up to 1.1166.
Sterling gained ground, with GBP/USD rising 0.57% to 1.3072.
The commodity linked currencies were broadly higher as oil prices rose.
USD/CAD was down 0.3% at 1.3172, AUD/USD advanced 0.83% to 0.7552 and NZD/USD climbed 0.66% to 0.7314.