SINGAPORE- The dollar clung to late-week gains on Monday, while the yen and yuan each edged higher, as investors looked ahead to a slew of US Federal Reserve speakers this week and to a decision on the inclusion of Chinese government bonds in a global index.
Chinese bond buying by foreigners has helped drive the yuan up more than 1 percent this month and it crept back toward a 16-month peak hit last week in early offshore trade, rising 0.2 percent to 6.7648 per dollar.
Inclusion in the FTSE Russell World Government Bond Index is likely to boost inflows and support the currency. A decision from FTSE Russell is due on Thursday.
“People are trying to get in ahead of that,” said Commonwealth Bank of Australia currency analyst Joe Capurso.
China’s benchmark lending rate is also fixed at 0100 GMT and is expected to be held steady for a fifth straight month.
Other moves were modest and volumes light owing to a public holiday in Japan.
Against a basket of currencies the dollar was steady at 92.943, roughly in the middle of a range it has kept for about two months.
The euro inched higher to $1.1847 and the pound GBP= moved up to $1.2933, though trepidation about rising coronavirus cases in Europe and Brexit turmoil kept a lid on gains.