This week started on a stable basis with the dollar. Investors are taking stock of U.S. economic data ahead of the Federal Reserve policy meeting this week.

The dollar index, which measures the U.S. currency against six other currencies, was little changed at 103.50 on Monday and stayed close to the six-week high of 103.82 it reached last week. The index is expected to gain 2% in January as traders temper expectations of a rapid and significant reduction in US interest rates. The Australian dollar rose by 0.29% to $0.6591, while the New Zealand dollar gained 0.12% to $0.60975

In addition, the euro was down 0.08% to $1.0842, and is heading for a 2% drop during the month. Last week, the European Central Bank kept interest rates at a record 4% and reaffirmed its commitment to fighting inflation.

For its part, the Japanese yen strengthened slightly to 148.07 to the dollar, but it is on track to record a 5% drop in January, its weakest monthly performance since June 2022, as traders temper their expectations as to when which the Bank of Japan will get out of its ultra-free policy

Sterling bought $1.2704, up 0.01% on the day, ahead of the Bank of England meeting later in the week.