Investing.com - The dollar was little changed on Monday ahead of several key central bank meetings coming up this week.
The Bank of Japan ends a two-day meeting on Tuesday, while the U.S. Federal Reserve concludes its policy meeting on Wednesday and is widely expected to reaffirm the outlook for further gradual rate rises, as the market is almost fully priced for a rate hike in September and expects a further move before the end of this year. The Bank of England also makes a policy decision on Thursday.
The U.S. Dollar Index, which tracks the greenback against a basket of other currencies, was unchanged at 94.47 by 1:20AM ET (05:20 GMT).
U.S. second-quarter GDP grew at 4.1%, marking the quickest pace of growth since 2014, although its impact on the dollar seemed to be limited.
In Asia, Bank of Japan’s (BOJ) policy meeting on Tuesday is expected to receive some focus as traders believe the central bank could tweak its massive asset-buying campaign. The USD/JPY pair gained 0.02% to 111.05 ahead of the meeting.
"Our base case scenario is for the BOJ to make no policy change. But there is increasing speculation the BOJ may tweak its yield curve control settings in part because of lower bank profitability and muted inflation in Japan," Elias Haddad, senior currency strategist at Commonwealth Bank of Australia, wrote in a note.
Analysts also believed the BOJ could also modify its annual objective of accumulating 80 trillion yen ($720 billion) of Japanese government bonds, as well as potentially lifting its target yield for 10-year JGBs.
"Any of these policy changes would be interpreted as a step toward less monetary policy accommodation, dragging USD/JPY lower," Haddad said.
Elsewhere, the Australian dollar dipped 0.05% to $0.7398, trimming some of its gains after rising roughly 0.4% on Friday against a broadly sagging dollar.