Investing.com - The yen gained in early Asia on Monday with investors geared up for a busy week of central bank policy reviews.
USD/JPY changed hands at 106.68, down 0.30%, while EUR/USD traded at 1.1248, down 0.04%.
In China, fixed asset investment is due with a 10.5% gain expected in May year-on-year. Also up is industrial production for May seen up 5.9% year-on-year and retail sales seen up 10.1% year-on-year.
Markets in Australia are shut for a holiday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 94.63.
Investors will turn their attention to Wednesday’s monetary policy announcement by the Fed for clues on the future direction of U.S. interest rates, as well as monetary policy meetings in Japan, Switzerland and the U.K.
Also ahead, Britain's June 23 referendum on whether to remain in the European Union will weigh on the pound and euro.
Last week, the dollar ended the week sharply higher against the other major currencies on Friday despite diminished expectations for a summer rate hike by the Federal Reserve.
Markets have pushed back expectations on the timing of the next rate hike by the U.S. central bank after the dismal employment report for May, which showed that the economy added just 38,000 jobs last month, the smallest increase since September 2010.
The CME Group's (NASDAQ:CME) Fed Watch tool indicated on Friday that there is a 1.9% chance the FOMC will raise rates in June. The probability of at least one rate hike in 2016 stood at 58.8%.
A speech by Fed Chair Janet Yellen on Monday indicated that interest rates won’t rise until uncertainty over the economic outlook is resolved.
Yellen said she expects the economic recovery to continue but gave no indications on the timing of a next rate increase.
The Fed raised interest rates for the first time in almost a decade in December.