Dollar trims losses, U.S. data ahead

© Reuters. Dollar eases off session lows as markets eye U.S. data

Investing.com – The dollar trimmed losses against the other major currencies in quiet trade on Monday, as investors eyed the release of U.S. housing sector data later in the day.

The dollar was lower against the yen, with sliding 0.42% to 120.96, after rising to two-month highs of 121.47 late Friday.

The dollar rallied late last week after European Central Bank President Mario Draghi signaled that further monetary easing is likely later this year.

The comments underlined the diverging monetary policy stance between the Federal Reserve and other central banks. The Fed is currently expected to start hiking interest rates sometime in early 2016.

On Friday, in an effort to shore up slowing growth in the world’s second largest economy.

It was the sixth rate cut since last November, reinforcing the divergence in monetary policy between the U.S. and central banks in the rest of the world.

Investors were looking ahead to Wednesday’s monetary policy announcement by the Fed for fresh indications on the timing of an initial rate hike.

eased 0.09% to trade at 1.1007, not far from Friday’s lows of 1.0995, the weakest since August 11.

Earlier Monday, data showed that fell to 108.2 from 108.5 in September, but was better than expectations for a reading of 107.8.

The current conditions index fell to 112.6, from 114 a month ago, but the expectations index rose to 103.8, from 103.3.

Elsewhere, the dollar was lower against the pound, with up 0.12% at 1.5341 but higher against the Swiss franc, with climbing 0.53% to 0.9836.

The Australian and New Zealand dollars were stronger, with gaining 0.37% to 0.7253 and with rising 0.39% to 0.6777.

Meanwhile, edged down 0.14% to trade at 1.3149.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 97.18, still close to Friday’s two-month highs of 97.30.

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Dollar trims losses, U.S. data ahead