WASHINGTON (dpa-AFX) - The U.S. Dollar was notably weaker against most major currencies on Monday, ahead of the Federal Reserve's two-day monetary policy meeting, scheduled to take place this Tuesday and Wednesday.
The Labor Department's monthly non-farm payrolls data, released on Friday (June 5), was a huge surprise, with jobs growth showing a big addition in the month of May. Unemployment rate too came in at much less than expected level. Still, several analysts expect the central bank will continue to sound a cautious note about the near-term outlook for the economy.
The central bank is widely expected to hold interest rates unchanged for now, but some more stimulus measures are not ruled out.
The dollar index, which dropped to a low of 96.60, was last seen at 96.70, trailing Friday's close by about 0.25%.
Against the Euro, the dollar weakened to $1.1321 before recovering to $1.1294, still slightly below previous close. Weak data on German industrial production for the month of April weighed on Euro.
Data from Destatis showed Germany's industrial production logged its biggest decline since the series began in 1991 as coronavirus containment measures weighed heavily on industrial activity. Industrial output decreased 25.3% year-on-year in April, following an 11.3% fall in the previous month.
Month-on-month, industrial production plunged 17.9%versus a revised 8.9% drop in March. Economists had forecast a monthly fall of 16%.
Survey results from the behavioral research firm Sentix showing a notable improvement in euro area business sentiment in June had pushed up euro against other major currencies earlier in the day.
Against Pound Sterling, the dollar eased to $1.2724 a sterling, down more than 0.4% from Friday's level.
The Japanese currency was stronger at 108.40 a dollar, compared to 109.59 a dollar in the previous session.
Against the Aussie, the dollar was notably lower at $0.7021, and against Swiss franc, it was down nearly 0.5% at CHF 0.9576, compared to CHF 0.9623 on Friday.
The Loonie was changing hands at 1.3378 a dollar, as against 1.3422 a dollar in the previous session.
Copyright RTT News/dpa-AFX
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