The dollar is stable, traders are reassessing their bets on raising interest rates

The US dollar fell somewhat on Monday as traders believed the US Federal Reserve’s rate hike steps had already been absorbed while the euro retreated from Friday’s two-month high.

The Chinese central bank’s sudden cut in key lending rates has highlighted the bank as a tweeter out of the fray while other central banks are in talks about raising rates. The Chinese move only briefly affected the yuan’s price.

The dollar index fell 0.1 percent to 95.076 by 0900 GMT.

It had fallen last week until it rose on Friday. US Treasury markets were closed for a holiday on Monday.

The Federal Reserve is scheduled to meet on January 25-26, but it is not yet expected to raise interest rates.

The euro rose 0.1 percent against the dollar to $1.1432. No significant economic data is expected this week, but investors’ attention will be focused on speeches by European Central Bank President Christine Lagarde and other members of the bank’s board of directors.

On Friday, Lagarde said the bank was ready to take all necessary measures to bring inflation down to its 2 percent target. Inflation rose to 5 percent last month, an all-time high for the euro zone.