Investing.com - The dollar eased back from six year peaks against the yen on Monday and backed off 14-month highs against the euro as investors took a breather following the greenback’s rally on Friday.
USD/JPY dipped 0.14% to 108.89, off Friday’s peaks of 109.45, the most since August 2008.
EUR/USD was up 0.22% to 1.2859, recovering slightly from Friday’s lows of 1.2827.
Demand for the greenback continued to be underpinned as indications that the economic recovery is making solid progress fuelled expectations that the Federal Reserve will hike interest rates sooner than markets are expecting.
Last week, the Fed offered fresh guidance on its plans to raise interest rates, outlining in more detail how it will start to raise short term interest rates when the time comes.
In contrast, the Bank of Japan and the European Central Bank look likely to stick to a loose monetary policy stance amid concerns over patchy economic growth.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.24% to 84.73. Last week the index posted its tenth successive weekly gain on the back of expectations for an early hike in U.S. interest rates.
Elsewhere, the dollar was lower against the pound, with GBP/USD advancing 0.31% to 1.6335.