Dollar Gains as Market Awaits Key Fed Speeches

The dollar showed a slight increase on Monday as traders geared up for a series of speeches from Federal Reserve officials, expected to shed light on U.S. rate forecasts after the central bank's recent easing measures. The greenback traded near levels reported before last week's Fed decision, consistent with the bank's concerns over the labor market as a key policy influencer.

U.S. economic data highlighted a decrease in new unemployment claims, reversing the previous week's rise. The lack of major data until Friday's core PCE inflation leaves room for investors to reconsider the Fed's rate policy trajectory, suggested Bob Savage, BNY Mellon's market macro strategy lead. Upcoming speeches include key figures such as Fed Chair Jerome Powell, adding weight to the markets' focus.

In other currency movements, the Swedish crown weakened ahead of the Riksbank policy meeting, while the yen dipped slightly despite previous gains driven by speculation of a Bank of Japan rate hike. In contrast, domestic issues weighed down sterling, and the Australian and Chinese currencies reacted to recent economic and policy changes within their respective regions.

(With inputs from agencies.)