Investing.com - The euro was trading close to three week highs against the softer dollar on Monday as expectations that the Federal Reserve will delay hiking interest rates until early next year continued to pressure the greenback lower.
EUR/USD was at 1.1370, not far from Friday’s three-week peaks of 1.1386.
The greenback remained under pressure after last week’s minutes from the Fed’s September policy meeting showed that most policymakers thought an initial rate hike should still come this year.
But the minutes also noted that recent global economic and financial developments may have increased the downside risks to the U.S. economy.
The minutes reinforced expectations that U.S. interest rates will remain on hold until well into 2016 after a weak U.S. jobs report at the start of the month prompted investors to push back expectations on the timing of an initial rate hike.
The dollar was also slightly lower against the yen, with USD/JPY easing 0.15% to 120.02.
The euro was little changed against the Japanese currency, with EUR/JPY at 136.47.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased 0.15% to 94.79, just above the three week low of 94.75 set on Friday.
Investors were looking to U.S. economic reports on retail sales and inflation later in the week for further indications on the possible direction of monetary policy.