The dollar was little changed Monday, as investors weighed the possibility of higher rates in the U.S. against signs of tightening monetary policy abroad.
The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently unchanged at 88.36.
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Federal Reserve Chairwoman Janet Yellen is scheduled to deliver her semiannual monetary policy report to Congress on Wednesday and Thursday. Ms. Yellen has taken an optimistic view of the economy in recent weeks, bolstering the case for a third rate increase from the central bank this year. Higher rates tend to boost the dollar, as they make the currency more attractive to yield-seeking investors.
Some investors believe the Bank of Canada's monetary policy meeting, scheduled for Wednesday, may be less bullish for the dollar. Officials at the central bank have signaled they may be getting ready to raise interest rates, joining several other countries that appear to be getting ready to tighten monetary policy after a long period of easing.
The dollar has come under fresh pressure in recent weeks, after central-bank officials in Europe and Canada offered some of their strongest signals yet that they could soon begin winding down easy money policies.
These days, "it is the looming turnaround in monetary policy elsewhere that's driving currencies, and pushing the dollar down," analysts at Standard Bank wrote in a note to clients.
The WSJ Dollar index is down 4.9% this year.
The euro was recently down 0.1% at $1.1399. The dollar was up 0.1% at Yen113.99.
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(END) Dow Jones Newswires
July 10, 2017 17:28 ET (21:28 GMT)