Dollar holds at 4-month peak vs. other majors

Forex

Investing.com - The dollar held steady at a four-month peak against the other major currencies on Monday, as investors awaited the Federal Reserve and Bank of Japan’s upcoming meetings and as trading volumes were set to remain light with no major U.S. data to be released throughout the day.

EUR/USD held steady at 1.0982, still close to Friday’s one-month lows of 1.0951.

Investors shrugged off data on Monday showing that the German Ifo business climate indexticked down to 108.3 in July from 108.7 in June, compared to expectations for a drop to 107.5.

Meanwhile, upbeat U.S. data released that week continued to support expectations for a rate hike by the U.S. central bank in the near future.

While most investors expect the Fed to leave its monetary policy unchanged this week, it could give hints on the timing of future rate hikes.

USD/JPY slipped 0.10% to 106.01.

Market participants were also looking ahead to Friday’s policy statement by the BoJ, amid growing expectations for the announcement of additional stimulus measures.

The pound was little changed, with GBP/USD at 1.3107, while USD/CHF held steady at 0.9866.

The Australian dollar was steady, with AUD/USD at 0.7461, while NZD/USD fell 0.23% to 0.6982.

Elsewhere, USD/CAD climbed 0.75% to trade at three-and-a-half month high of 1.3227.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 97.43, just off the fresh four-month highs of 97.62 hit overnight.