WASHINGTON (dpa-AFX) - The U.S. dollar moved in a narrow range against most major currencies on Monday with traders looking ahead to the monetary policy statement from the Federal Reserve. The Fed, which is scheduled to announce its rate decision on Wednesday, is widely expected to hold rates at its current 1.5% - 2%.
The central bank's views on growth, future rate outlook and the Fed Chair Jerome Powell's press conference are likely to set the trend for the currency.
Lingering uncertainty about U.S.-China trade talks weighed on the dollar,
The new round of 15% tariffs on $165 billion worth of Chinese imports set to take effect this coming Sunday could throw a wrench into negotiations over a phase one trade deal, which is reportedly being held up in part by a dispute over how much to roll back existing tariffs.
The dollar index, which recovered to 97.72 after having eased to 97.56 early on in the session, was last seen at 97.65, down 0.05% from previous close.
Against the euro, the dollar strengthened to 1.1054 from a low of 1.1080, before weakening to 1.1063, down just marginally from Friday's close.
Eurozone's investor confidence improved for a second straight month to its highest level since May, and business expectations were the strongest in nearly two years, suggesting that recessions fears have receded, survey data from the behavioral research institute Sentix showed on Monday.
The pound sterling gained a bit against the dollar, with a unit of sterling fetching $1.3149, against previous close of $1.3138.
The British currency was steady as recent polls showed a solid lead for the Conservative party at this week's general election, which would end the Brexit uncertainty.
The Japanese yen was slightly weak at 108.62 a dollar, compared with 108.59 yen a dollar on Friday.
The Aussie was down with the AUD-USD pair trading at 0.6830. The dollar was lower against Swiss franc and the loonie, with the respective pairs at 0.9879 and 1.3234 around late afternoon.
Data released by Canada Mortgage and Housing Corporation said the seasonally adjusted annual rates of housing starts in Canada rose 0.3% from a month earlier 201,318 units in November 2019, missing market expectations of 205,000.
Meanwhile, the value of building permits in Canada fell 1.5% from a year earlier to C$ 8.3 billion in October 2019, following a downwardly revised 5.9% decline in the previous month.
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