Investing.com - The dollar was trading close to one-month lows against the euro and the yen on Monday after a recent batch of weak U.S. economic data fuelled expectations that the Federal Reserve would keep rates on hold for an extended period.
EUR/USD touched highs of 1.3654, the most since June 9 and was last at 1.3645.
The pair was likely to find support at 1.3600 and resistance at 1.3670.
The dollar has come under heavy selling pressure since official data last week showed that the U.S. economy contracted at an annual rate of 2.9% in the first three months of the year.
Another report showed that U.S. consumer spending rose by just 0.2% in May, below forecasts for 0.4%.
Investors were turning their attention to the U.S. nonfarm payrolls report, due to be released one day early on Thursday, for further indications on the strength of the labor market.
Investors were also awaiting preliminary data on euro zone inflation later in the trading day ahead of the European Central Bank’s policy meeting later in the week.
USD/JPY touched session lows of 101.24, the weakest since May 21.
Demand for the yen continued to be underpinned after upbeat Japanese economic data late last week diminished expectations for more monetary easing by the Bank of Japan.
Elsewhere Monday, the euro edged lower against the yen, with EUR/JPY at 138.33, from 138.42 late Friday.