Investing.com - The dollar edged higher against the yen and was steady against the euro on Monday, remaining supported above the lows hit in the wake of the Federal Reserve’s decision last week to keep short term interest rates on hold for longer.
USD/JPY eased up 0.11% to 120.14, holding above Friday’s more than one-week lows of 119.05.
Trading remained thin with markets in Japan closed for the start of a three day holiday.
EUR/USD inched up 0.4% to 1.1301, remaining below Friday’s highs of 1.1459.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 95.32, holding above Friday’s three-week lows of 94.19.
The greenback remained on the defensive after the Fed held interest rates steady on Thursday, amid concerns over soft inflation and the effects of recent market volatility on the U.S. economy.
While the decision was not completely unexpected the Fed’s concerns over the uncertain outlook for global growth rattled financial markets and pressured the dollar lower.
The euro’s gains were held in check after European Central Bank Chief Economist Peter Praet reiterated Saturday that the bank is prepared to enlarge its monetary stimulus program if necessary to combat risks from global economic turbulence.
Earlier this month the ECB cut its forecasts for growth and inflation and indicated that its trillion-euro bond-buying program could be scaled up.
Elsewhere in the euro zone, Alexis Tsipras was set to form a new government in Greece after his left-wing Syriza party won a second general election in less than nine months.