Investing.com – The Japanese yen was mildly weaker on Monday as the Bank of Japan kicked off its latest two-day monetary policy meeting with the board expected to stand pat.
USD/JPY traded at 101.38, up 0.02%, while AUD/USD held at 0.9384, down 0.09%.
In the past week, the dollar was steady against the euro and the yen on as concerns over the financial health of Portugal’s largest lender eased, dampening safe haven demand.
Portugal’s Banco Espirito Santo fuelled a sharp selloff in markets on Thursday, amid fears over the risk of contagion. Concerns eased after Portugal’s central bank said Friday it was satisfied that the lender is able to fulfill its capital requirements.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.01% at 80.25.
The dollar came under pressure earlier in the week, after Wednesday’s minutes of the Federal Reserve’s June meeting showed that officials agreed to end the bank’s asset purchase program in October, but revealed little new information on when rates could start to increase.
In the week ahead, investors will be watching testimony on monetary policy by Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi. Monetary policy announcements by the Bank of Canada and the Bank of Japan will also be in focus, while China is to release data on economic growth.
On Monday, the euro zone is to release data on industrial production and Draghi is to testify on monetary policy to the Committee on Economic and Monetary Affairs of the European Parliament. His comments will be closely watched.