Investing.com - The dollar dropped to eight-month lows against the other major currencies in subdued trade on Monday, as the Federal Reserve’s persistantly cautious stance on rate hikes continued to weigh on the greenback.
USD/JPY slipped 0.14% to 107.95, just off 17-month lows of 107.65 hit earlier in the day.
Japan’s Chief Cabinet Secretary Yoshihide Suga said Monday the government was closely monitoring the foreign exchange market and added that the moves in the yen were one-sided and speculative.
But investors stuck to the view that Japan will refrain from any direct action to stem the yen’s gains until at least after this week's G20 meetings in Washington.
Separately, the dollar remained weaker against the yen on the view that the Federal Reserve will stick to a cautious approach on hiking interest rates this year amid concerns over the outlook for the global economy.
Lower interest rates make the dollar less attractive to yield seeking investors.
EUR/USD rose 0.31% to trade at 1.1437.
Meanwhile, the dollar was lower against the pound, with GBP/USD up 1.03% at 1.4269 and turned lower against the Swiss franc, with USD/CHF sliding 0.30% to 0.9508.
The Australian and New Zealand dollars extended earlier gains, with AUD/USD up 0.65% at 0.7605 and with NZD/USD climbing 0.82% to 0.6862.
Elsewhere, USD/CAD dropped 0.39% to 1.2927.
The commodity currencies were boosted as oil prices rebounded after Russia said its crude output would remain flat next year.
Crude prices slipped earlier, after analysts warned that a planned meeting of major oil producers in Doha later this month would have only a limited effect on curbing global overproduction.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.47% at 93.79, the lowest level since August 2015.