Investing.com - The dollar edged lower against the other major currencies on Monday, as markets were still digesting the Federal Reserve’s latest policy decision and as investors remained cautious ahead of the highly-anticipated U.S. Presidential debate scheduled later in the day.
U.S. presidential nominees Hillary Clinton and Donald Trump were set to have their first debate at Hofstra University in New York state on Monday evening.
Meanwhile, markets were still recovering from the Fed’s decision to leave interest rates unchanged at the conclusion of its policy meeting on Wednesday, although it hinted that a hike could come in December if the job market continued to improve.
USD/JPY slid 0.49% to 100.48.
The yen strengthened after Bank of Japan Haruhiko Kuroda said the central bank remained ready to use every available tool to achieve its 2% inflation target, including additional stimulus measures.
The BOJ made an unexpected shift last week to targeting interest rates on government bonds.
EUR/USD added 0.11% to trade at 1.1239.
The euro found some support after the German research institute Ifo said its Business Climate Index rose to 109.5 this month, the highest level since July 2014, from a reading of 106.3 in August, above forecasts for 106.4.
The pound slipped lower, with GBP/USD down 0.16% at 1.2934, close to Friday’s six-week low of 1.2912, while USD/CHF fell 0.27% to 0.9685.
The Australian and New Zealand dollars were steady, with AUD/USD at 0.7619 and with NZD/USD at 0.7241.
Elsewhere, USD/CAD rose 0.13% to trade at 1.3185, the highest since September 21.
Statistics New Zealand said over the weekend that the trade deficit widened to NZ$1,265 million in August from NZ$433 million the previous month.
Analysts had expected the trade deficit to widen to $NZ766 million last month.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.10% at 95.31.