/ The US dollar is struggling to maintain its gains, during early trading, today, Monday, as the upcoming central bank decisions in Japan and Europe and fluctuating market expectations about reducing US interest rates led to a halt to its data-driven rise late last week.
The Japanese yen was the notable exception in transactions that were otherwise characterized by calm. The Japanese currency moved away from its lowest level in one month last Friday at $148.80 and rose to $147.74. It was also the currency that fell the most against the dollar this year, as the yen fell about 5% in a rapid rebound from its rise last December to its highest levels in five months near $140.
Today, the Bank of Japan begins a two-day meeting. Bets on a shift from monetary policy eased at this meeting in the wake of the earthquake that struck the west coast of Japan on New Year’s Day, along with cautious comments from bank officials.