Investing.com - The dollar was slightly lower against the yen on Monday, while the euro gave up gains against the greenback after a report showed that German business confidence fell to the lowest level in nearly two years this month.
USD/JPY was last down 0.18% to 107.94 as investors looked ahead to the outcomes of policy meetings by the Federal Reserve and the Bank of Japan later in the week amid lingering concerns over the outlook for the global economy.
EUR/USD slid to lows of 1.2666 after German research institute Ifo said its index of business climate slid to 103.2 this month from 104.7 in September. It was the lowest level since December 2012 and was below forecasts of 104.3.
German firms reported that they are gloomier about current conditions and future prospects than last month, fuelling fears over the outlook for fourth quarter growth.
Germany's economy grew by 0.7% in the first quarter of the year, but then contracted by 0.2% in the three months to June. The country is to release data on third quarter growth next month.
The single currency rose above 1.27 against the dollar earlier after results of stress tests on Europe’s largest banks showed that most of the region’s top lenders have enough capital to survive another financial crisis.
The European Central Bank announced the results of yearlong tests to assess the finances of 150 banks on Sunday.
A total of 25 banks were found to have a capital shortfall, but most have already taken steps to resolve this, the ECB said.
Elsewhere, the dollar was slightly lower against the pound, with GBP/USD rising 0.16% to 1.6108, while USD/CHF was steady at 0.9516.
The New Zealand dollar pushed higher, with NZD/USD adding 0.20% to trade at 0.7870 but gains were limited as risk appetite remained muted.
AUD/USD edged up 0.08% to 0.8798, while USD/CAD was little changed at 1.1235.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, was almost unchanged at 85.77.