Dollar Strengthens Amid Rate Decision Anticipation

The US dollar strengthened on Monday as investors prepared for key interest rate decisions from the Federal Reserve and Bank of Japan. The euro fell by nearly 0.3% to $1.1565, while sterling remained relatively unchanged at $1.3503.

The dollar index rose 0.23% to 99.34, a measure that tracks the US currency against six major currencies. In contrast, the yen weakened by 0.3% to 154.03 per dollar but held close to its seven-month high of 152.89 reached last week.

The yen has gained about 4% since September began, fueled by expectations that the Bank of Japan will accelerate its rate-hike cycle and signs that Japanese investors may repatriate some overseas assets.