U.S. Dollar Falls before Fed Meeting

The dollar slumped to a one-month low against the yen on expectations that the Federal Reserve will affirm at its monetary policy meeting this week that it intends to keep interest rates low for an extended period.

The dollar index, which shed 1.2 percent last week for its third straight weekly loss, is holding just above a key chart support, a break of which could spur more loss-cutting in holiday-thinned trade.

The yen was the biggest mover in Asian trade, with the dollar/yen falling 0.5 percent to 97.80 yen, having fallen as low as 97.635, its lowest since late June.


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