Dollar off lows, but still shaky as hawkish European central banks help peers
The dollar edged off from a nine-month low against a basket of currencies early on Monday, but it remained shaky as signs central banks in Europe were moving away from accommodative monetary policies kept the euro and sterling well bid.
The greenback was hit hard last week as hawkish comments from central bankers increased expectations that the European Central Bank, the Bank of England and Bank of Canada would eventually shift to tighter monetary policy.
The dollar was little changed at 112.290 yen
The dip was seen as a knee-jerk reaction to Japanese Prime Minister Shinzo Abe's Liberal Democratic Party suffering an historic defeat in an election in the capital Tokyo on Sunday, signaling potential trouble ahead for the premier.
"The Tokyo election won't have a strong market impact, in my view, as there are no opposition parties in Japan that can immediately replace the (ruling) LDP," said Yukio Ishizuki, senior currency strategist at Daiwa Securities.
"The currency market is more focused on monetary policy changes in Europe and other regions. That the BoE and BOC now appear to be in a hurry to normalize monetary policy was a big surprise last week."
The euro was 0.05 percent lower at $1.1422
Scepticism that the Federal Reserve would be able to raise interest rates again this year amid a recent batch of weak U.S. economic data have further boosted the euro.
The pound was down 0.1 percent at $1.3015
The Canadian dollar was 0.1 percent weaker at C$1.2979 per dollar
Canadian companies are more optimistic about future sales and exports, while improving demand is driving capacity pressures that should boost investment and hiring, the BOC said in a report on Friday.
The Australian and New Zealand dollars were little changed at $0.7691