LONDON: The US dollar flagged against the euro and yen on Monday after a drop in U.S. shares and bond yields dimmed its allure, with markets focused on whether the upcoming Federal Reserve policy meeting can shore up the greenback.
The euro rose 0.2 percent to $1.1000, having gained about 1.4 percent last week.
The euro has lost as much as 5 percent against the dollar since mid-June on Greek debt worries and the divergence of U.S. and European monetary policies, but a technical correction to the dollar’s rally gave the euro a breather last week.
The dollar faced a similar predicament against the yen, having surged to a six-week high of 124.48 early last week only to retrace its advance. It was last down 0.2 percent at 123.56 after plumbing a near two-week low of 123.49.
Aside from the Fed, focus remained on sliding commodity prices an their potential impact on currencies.
The more obvious impact from lower commodity prices has been felt by currencies of commodity exporters such as Canada, Australia and Norway. But commodity-importer currencies such as the yen were also expected to feel the effect.
