Investing.com - The euro fell to the day’s lows against the U.S. dollar on Monday after a senior European Central Bank official said it will probably review its policy stance in June, but stop short of any decision on winding down stimulus.
EUR/USD was down 0.69% to 1.0624 from around 1.0698 earlier.
Ewald Nowotny said the ECB will probably wait for its June economic forecasts before reassessing its policy stance, but that no decision will be made about tapering its economic stimulus program.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, climbed 0.39% to 100.95, boosted by the weaker euro, after falling to overnight lows of 100.14.
Gains in the dollar were held in check as controversial immigration restrictions put in place by President Donald Trump underlined concerns over the destabilizing impact of the new administration's protectionist policies.
On Friday, Trump imposed a travel ban on seven Muslim-majority countries and introduced measures to block refugees from entering the U.S.
The order has triggered legal challenges, international criticism, widespread protests and confusion over its implementation at airports.
The dollar also remained on the defensive after Friday’s weaker-than-expected figures on U.S. fourth quarter growth prompted speculation that the Federal Reserve will avoid hiking interest rates too quickly.
The Fed, which is to hold its next policy meeting on Wednesday, isn’t expected to raise interest rates, but investors are keen to hear how it views the economy and the future path of interest rates.
The dollar remained lower against the safe haven yen, with USD/JPY down 0.42% at 114.61.
Meanwhile, sterling was lower against the dollar for the third straight session, with GBP/USD down 0.37% at 1.2501 ahead of the Bank of England’s upcoming policy meeting on Thursday.
The BoE is expected to revise up its outlook for inflation and growth, but uncertainty over Brexit is expected to cloud the outlook.
The pound moved higher against the euro, with EUR/GBP losing 0.26% to trade at 0.8498.