Investing.com - The dollar remained weaker against a basket of the other major currencies on Monday as markets remained largely rangebound ahead of the outcome of this week’s Federal Reserve meeting.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.22% to 101.16 at 11.04 ET, after falling to two-week lows of 100.86 overnight.
Investors were awaiting the outcome of the Fed’s two-day policy meeting on Wednesday, with a rate hike almost fully priced in by markets.
Friday’s U.S. nonfarm payrolls report for February did little to alter expectations for a rate increase this week.
The Department of Labor reported that U.S. employers continued to hire workers at a solid pace and wages also rose, albeit at a slower pace than some economists had expected.
Futures traders are pricing in around a 90% chance of a hike at the Fed meeting, according to Investing.com’s Fed Rate Monitor Tool.
EUR/USD was at 1.0667 after touching one-month highs of 1.0705 earlier after Reuters reported that some European Central Bank policymakers had suggested raising rates from their record lows before the end of the bank’s asset purchase stimulus program.
The dollar dipped against the yen, with USD/JPY easing 0.09% to 114.71, off Friday’s seven-week highs of 115.49.
Sterling bounced higher against the dollar and the euro ahead of a UK parliamentary debate on changes to Brexit legislation as investors expected Britain's lower house of parliament to throw out changes made by the upper house last week.
GBP/USD rose 0.45% to 1.2224, pulling away from last week’s eight-week trough.
Sterling remained supported despite growing speculation British Prime Minister Theresa May could trigger Article 50 of the Lisbon Treaty on Tuesday, to formally begin the two-year process of exiting the European Union.
The pound continued to hold gains after Scotland’s First Minister Nicola Sturgeon said Monday she will ask the Scottish parliament to vote next week on whether to hold a second independence vote.
EUR/GBP was down 0.65% at 0.8724, retreating from the eight-week highs of 0.8786 hit overnight.