LONDON: The dollar reached a two-week low against the euro amid speculation the Federal Reserve will refrain from lifting its benchmark rate at the end of a policy meeting Thursday.
The greenback fell against most major peers last week as a report showed flat U.S. producer prices. Consumer price data due Sept. 16 will probably show a drop for August. The yen was little changed ahead of a Bank of Japan meeting Tuesday as more than a third of economists polled predicted policy makers will increase monetary stimulus by the end of October.
“It’s hard to justify that a U.S. rate hike is the right move at this time,” said Derek Mumford, director at Rochford Capital in Sydney. “There could be some squaring of positions prior to the decision and keep the U.S. dollar certainly from going higher.”
The dollar fell 0.1 percent to $1.1344 per euro as of 12:12 p.m. in Tokyo. It fell to as low as to $1.1359, the weakest since Aug. 27. The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, fell 0.1 percent to 1,203.16 after completing its first weekly decline since August.
The yen was little changed at 120.47 per greenback from 120.59 on Friday and 136.67 against the euro.
