NEW YORK / Content Syndication Services / — The U.S. dollar was little changed on Monday after posting a weekly decline, with investors tracking currency moves against a backdrop of Middle East tensions, central bank signals and scheduled U.S. labor data. The dollar index, which measures the currency against six major peers, rose 0.04% to 99.05 after falling 0.4% in the previous week.
The euro declined 0.13% to $1.1644, while the dollar gained 0.13% against the Japanese yen to 159.48. Sterling eased 0.07% to $1.3449. Currency moves remained narrow across major pairs as traders monitored the latest developments affecting oil prices, bond yields and interest rate expectations in the United States, Europe and Japan.
The dollar’s stabilization followed a week in which the currency lost ground as foreign exchange markets adjusted to changes in risk sentiment and rate expectations. In Asia, the Australian dollar and New Zealand dollar were also little changed against the U.S. currency. The yen remained close to levels that have drawn attention from Japanese authorities during previous periods of market pressure.
Labor Data In Focus
The U.S. economic calendar places the Bureau of Labor Statistics employment report at the center of market attention this week. The May employment data are scheduled for release on June 5 at 8:30 a.m. Eastern time. The April report showed nonfarm payroll employment increased by 115,000 and the unemployment rate held at 4.3%, according to the Bureau of Labor Statistics.
The Federal Reserve is scheduled to hold its next policy meeting on June 16 and June 17, with updated economic projections due at the same meeting. The Federal Reserve has kept monetary policy under close scrutiny as inflation, labor market conditions and energy prices remain central factors in currency and bond markets. Recent public remarks from policymakers have emphasized data dependence.
Central Banks Shape Trading
In Europe, comments from European Central Bank officials remained part of the broader rate debate as the euro traded below recent highs against the dollar. In Japan, the yen’s position near 160 per dollar kept attention on the Bank of Japan and Japanese currency policy. Japan previously reported large scale yen buying during periods of sharp depreciation, adding to market sensitivity around the currency.
The dollar’s performance also reflected broader caution in global markets tied to developments in the Middle East and their impact on oil prices. Energy costs remain relevant to inflation readings and monetary policy assessments across major economies. Trading on Monday showed limited movement rather than a broad reversal, leaving the dollar near the levels reached at the end of last week.