The dollar index remained stable near 106.5 on Monday, close to its three-week high, as investors prepared for the Federal Reserve’s monetary policy meeting this week.
While no interest rate change is anticipated from the central bank on Wednesday, markets will be keen to see how the Fed plans to tackle persistent inflation without exacerbating recessionary concerns.
In terms of economic data, US core PCE prices rose as expected, but the headline PCE increased slightly more than anticipated in September.
US consumer spending also saw a significant rise last month, driven by increased purchases of motor vehicles and travel.
Investors are now looking to the upcoming monthly jobs report and business activity data in the US for further direction.