TOKYO- The dollar steadied against major currencies on Monday as traders looked to more data for a gauge on the health of the global economy and the Federal Reserve’s annual Jackson Hole retreat for guidance on the outlook for US monetary policy.
Sentiment for the greenback has improved somewhat due to supportive data on business activity and home sales, but there are still concerns that additional monetary easing may be necessary to keep economic growth on track.
Traders in the yuan, and across the broader financial markets, are also nervously watching Sino-US ties as President Donald Trump’s wide-ranging diplomatic dispute with China shows no signs of abating.
“There could be a short-term bounce in the dollar, especially against the euro,” said Junichi Ishikawa, senior foreign exchange strategist at IG Securities in Tokyo.
“In the long term, the dollar will resume its decline because the Fed has to commit to aggressive easing for an very long time.”
Against the euro, the dollar held steady at $1.1803, clinging onto gains made late last week.
The British pound bought $1.3095 and traded at 90.14 pence per euro.
The greenback fetched 0.9121 Swiss franc, holding onto a 0.5 percent gain from Friday.