Dollar rises ahead of US central bank meeting and sterling prepares for Brexit meeting
Economy News _ Baghdad
The dollar traded near its highest level in more than two months against the yen on Monday ahead of the Federal Reserve's meeting this week as policymakers are expected to cut interest rates but stress their reluctance to further monetary easing.
Sterling fell against the dollar and the euro, amid expectations of an agreement later on Monday to postpone Britain's secession from the European Union until January 31 after Prime Minister Boris Johnson failed to obtain approval of his timetable for exit from the bloc.
The Chinese yuan rose to its strongest level in two weeks on Monday after Beijing and Washington said they were "close to finalizing" a first phase of an agreement to ease their trade war, but some traders played down their optimism that a quick settlement was far from certain.
The market's focus will shift to the Fed meeting ending on October 30 and the Bank of Japan meeting ending on October 31. The Fed is expected to cut interest rates for the third time this year.
The Bank of Japan tends to keep policy unchanged.
The dollar was trading at 108.77 yen on Monday, near 108.94 yen, the highest level since August 1.
The US currency hit $ 1.1083 against the euro, near its strongest level in more than a week.
Sterling fell 0.14 percent to $ 1.2818 and fell 0.15 percent to 86.48 pence per euro.
The dollar index, which tracks the performance of the greenback versus a basket of six major currencies, was steady at 97.849, which is also close to its highest level in more than a week.
In the domestic market, the yuan briefly rose to 7.0523 against the dollar, the strongest level since October 14.
In foreign trade, the yuan briefly rose to 7.0450 against the dollar on Monday, the strongest level since Sept. 13, but gradually gave up its gains.