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The dollar felt its way on Monday, as investors continued to analyze the results of the central bank meetings witnessed last week, including the Bank of Japan’s decision to adhere to the monetary easing policy that keeps the yen weak.
The dollar index, which measures the performance of the greenback against six other major currencies, rose only 0.029% to 102.31, staying near a one-month low of 102, which it touched on Friday. US financial markets are closed today for a holiday.
In a busy week of central bank meetings, the Federal Reserve kept interest rates unchanged on Wednesday, but hinted at the possibility of a return to increases to curb inflation.
The European Central Bank raised interest rates by 25 basis points on Thursday leaving the door open for further hikes, and the Bank of Japan closed out the week with its decision.
The yen touched its lowest level against the dollar in nearly seven months at 141.975 per dollar earlier on Monday. And it recorded 141.53 per dollar in the latest transactions.
The yen also fell against the euro to a 15-year low of 155.355 yen per euro earlier in the session, before rising slightly to 154.79 in latest trading. Against the British pound, the yen fell to 182.11, its lowest level since December 2015.
The euro climbed to $1.0935, hovering near a one-month peak. The single European currency has gained more than 2 percent since the beginning of June.
After significant gains for the Australian dollar last week, when it hit a multi-month high on Friday, it fell 0.48% to $0.684. The New Zealand dollar also fell 0.30 percent to $ 0.621.
The pound sterling fell 0.04% to $1.2812, but it was not far from a peak of about 14 months ahead of the Bank of England’s monetary policy meeting scheduled for Thursday.
The Bank of England is expected to raise interest rates by another 25 basis points as the British central bank battles inflation that has more than quadrupled its target, according to a Reuters poll of economists last week.
