The dollar stabilized, on Monday, in light of a holiday in most major Asian markets that postponed the beginning of what could turn into a busy week, while eyes turned to US inflation data in search of indications of when the US Federal Reserve might begin cutting interest rates.
The euro fell slightly to $1.0778, moving away from the highest level in ten days that it touched in early trading, after witnessing a slight recovery last week after steady declines since the beginning of 2024.
Euro zone economic growth data in the fourth quarter, which will be released on Wednesday, may provide a new trend.
The British pound settled at $1.2632.
The yen rose slightly to 149.04 against the dollar after limiting movements near the release of US consumer price index data for January tomorrow, Tuesday.
Data released earlier this month indicating a strong performance in employment activity undermined the chances that the Federal Reserve will cut interest rates in March, and markets are currently favoring this move in May.
Analysts expect the core index of consumer prices in the United States to record 0.3 percent on a monthly basis in January, but it will remain high on an annual basis and record 3.8 percent.
Likewise, UK CPI data due on Wednesday is set to set trends on when the Bank of England will start cutting interest rates.
Markets are also monitoring the Japanese yen, which is highly sensitive to interest rates, which rose significantly late last year as markets expected a soon cut in US interest rates, but has since declined with expectations that the cut date will be postponed.
