The U.S. Dollar Index follows the dollar versus a basket of other currencies crept up 0.05% to 98.278 by 11:47 PM ET (3:47 AM GMT).
The USD/JPY pair inched up 0.01% to 119.19, with Japanese markets shut for a holiday.
The yen continued to fall on Monday, while the Australian and New Zealand dollars remained bid. A slew of global central bank policymakers, including U.S. Federal Reserve Jerome Powell, will also talk throughout the week.
Yen Hitting Low
CME’s Fed watch foresaw an almost 90% chance of at least 75 basis points of increases across the Fed’s discussions in May and June 2022. Such high anticipations helped the dollar climb steadily in the early part of this year. However, with many Fed increases already priced in, it could stumble to gain further, according to some investors.
The yen also struck a four-year low against the more difficult Australian dollar, which has increased the recent rise in commodity prices.
Further gains could be feasible as the Fed’s hiking cycle is now priced. The Barclays analysts counted because of the continued recovery in global risk sentiment, which would generally support risk-friendly currencies.
The euro was at $1.1044, with the conflict in Ukraine dictating the future of both the single currency and the pound. Speeches from policymakers at the European Central Bank, including president Christine Lagarde, might also play a role.
Fighting resumes in Ukraine after Russia’s invasion on Feb. 24. Russia reached on Ukraine to lay down arms in the city of Mariupol. However, Ukraine insisted that there was no question of abandoning the city.