EUR/USD Rallies Above 1.10 as Fed Awaited for Cues

The dollar was subdued 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 lift the greenback.

The euro was little changed at $1.0972, 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.