Investing.com - The greenback fell to a two-and-a-half week low on Monday as investors pulled back ahead of the Federal Reserve’s meeting later in the week.
The Fed is expected to keep rates unchanged at its latest policy meeting on Wednesday, but its update on rate forecasts will be looked over closely.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, lost 0.1% to 95.958 as of 10:44 AM ET (14:44 GMT).
Recent weak economic data could lead to loosening monetary policy. The Fed has said it will be patient and review data before increasing rates in the near term.
Traders currently expect no interest rate hikes this year, according to Investing.com’s Fed Rate Monitor Tool.
Wednesday’s meeting is just the start of central bank decisions, with the Bank of England and Swiss National Bank due to meet on Thursday, while Russia’s central bank meets on Friday.
The dollar rose against the safe-haven yen, with USD/JPY rising 0.1% to 111.57.
Sterling fell as U.K. Prime Minister Theresa May tries to push her Brexit bill through parliament for the third time, even as analysts expect it to fail again. If it fails, May will have to ask the European Union to extend the March 29 deadline. GBP/USD slipped 0.4% to 1.3242.
Elsewhere, AUD/USD increased 0.2% to 0.7093, while NZD/USD gained 0.2% to 0.6855. The loonie inched up, with USD/CAD down 0.01% to 1.3330. EUR/USD was up 0.2% to 1.1341.