The dollar’s direction remains dependent on the outlook for U.S. policy tightening after the Federal Reserve last week cut its projections for interest rates, inflation and growth.
A gauge of the greenback against 10 counterparts was little changed after dropping the most since October 2011 last week as banks including HSBC Holdings Plc said the currency’s surge since August is coming to an end. Several Fed officials including San Francisco Fed President John Williams, who votes on policy this year, are scheduled to speak on Monday. Investors are seeking clues on the timing of the first U.S. rate increase in six years.
“We want some hints on when the U.S. interest rate will rise, keeping our eyes on Fed officials’ comments as the effect of last week’s Fed statement still linger,” said Takuya Kawabata, an analyst at Tokyo-based Gaitame.com Research Institute Ltd. The Bloomberg Dollar Spot Index was at 1,195.15 at 12:50 p.m. in Tokyo after tumbling 2.2 percent to 1,195.01 last week.
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