The dollar fell slightly on Monday as traders awaited a week dominated by central bank meetings around the world.
According to Reuters, the Bank of Japan (the central bank) appears to be ending its negative interest rate policy, while the Federal Reserve (the US central bank) is focused on the number of interest rate cuts it is expected to make. .
Besides Japan and the US, central banks in the UK, Australia, Norway, Switzerland, Mexico, Taiwan, Brazil and Indonesia are scheduled to meet, most of which are expected to keep interest rates unchanged.
The dollar index, which measures the US currency's performance against a basket of major currencies, fell 0.029% to 103,430 points. The dollar rose 2.0% this year as the U.S. economy's performance improved more than expected, prompting investors to reduce bets that the Federal Reserve will cut interest rates at a faster pace in 2024.
The Japanese yen was little changed, rising 0.09% to $149.21.
The Japanese currency has seen volatility in the past few weeks, falling to 150.88 last month before rebounding to its one-month high of 146.48 in early March.
Bigger-than-expected wage increases by major Japanese firms have fueled expectations that the central bank is poised to usher in a new era by ending its negative interest rate policy.
The euro rose 0.05% to $1.0893, while the British pound fell 0.04 to $1.2735, ahead of the Bank of England meeting on Thursday. The central bank is expected to keep interest rates unchanged at 5.25%.
