Investing.com - The U.S. dollar turned higher against the euro on Monday and trimmed losses against the yen, after the European Central Bank said reports that it may set a cap on peripheral euro zone bond yields were misleading.
During European afternoon trade, the dollar turned higher against the euro, with EUR/USD down 0.26% to 1.2300.
Market sentiment was boosted earlier, after German magazine Der Spiegel reported that the ECB may set an interest rate threshold on purchases of euro-area sovereign debt at its next policy meeting in September, beyond which its bond buying program would be activated.
Responding to the report, the EBC said it was "absolutely misleading" to report on decisions that have not yet been taken and added that it would act "strictly within its mandate".
The greenback was little changed against the pound, with GBP/USD dipping 0.02% to 1.5691.
The pound remained supported after a string of upbeat U.K. economic data last week indicated that the economy may not be performing as poorly as had been feared.
Elsewhere, the greenback trimmed losses against the yen, with USD/JPY dipping 0.04% to 79.52 and turned higher against the Swiss franc, with USD/CHF rising 0.23% to 0.9760.
The greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.02% to 0.9891, AUD/USD rising 0.19% to 1.0438 and NZD/USD inching up 0.02% to 0.8076.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.15% to 82.73.
Trade looked likely to remain subdued on Monday, with no significant economic data releases on the calendar, while volumes were light with many market participants on summer holidays.
During European afternoon trade, the dollar turned higher against the euro, with EUR/USD down 0.26% to 1.2300.
Market sentiment was boosted earlier, after German magazine Der Spiegel reported that the ECB may set an interest rate threshold on purchases of euro-area sovereign debt at its next policy meeting in September, beyond which its bond buying program would be activated.
Responding to the report, the EBC said it was "absolutely misleading" to report on decisions that have not yet been taken and added that it would act "strictly within its mandate".
The greenback was little changed against the pound, with GBP/USD dipping 0.02% to 1.5691.
The pound remained supported after a string of upbeat U.K. economic data last week indicated that the economy may not be performing as poorly as had been feared.
Elsewhere, the greenback trimmed losses against the yen, with USD/JPY dipping 0.04% to 79.52 and turned higher against the Swiss franc, with USD/CHF rising 0.23% to 0.9760.
The greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.02% to 0.9891, AUD/USD rising 0.19% to 1.0438 and NZD/USD inching up 0.02% to 0.8076.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.15% to 82.73.
Trade looked likely to remain subdued on Monday, with no significant economic data releases on the calendar, while volumes were light with many market participants on summer holidays.