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    Dollar holds at 1-week highs ahead of Fed meeting

    The dollar held steady at one-week highs against the other major currencies on Monday, as investors remained cautious ahead of the Federal Reserve’s monthly policy meeting this week.

    USD/JPY tumbled 1.07% to a one-and-a-half month low of 105.84.

    Markets have pushed back expectations on the timing of the next rate hike by the U.S. central bank after a dismal U.S. employment report for May, which showed the slowest rate of jobs growth since September 2010.

    Meanwhile, the safe-haven yen strengthened as weak economic data out of China and Japan on Monday hit the outlook for Asian economic growth.

    Data from China showed that growth in fixed-asset investment fell below 10% for the first time since 2000 in the January to May period.

    Another report showed that Japan's business survey index of sentiment at large manufacturers fell to minus 11.1 in the second quarter, from a reading of minus 7.9 in the first three months of the year.

    EUR/USD edged up 0.12% to 1.1264.

    The dollar was higher against the pound, with GBP/USD down 0.86% at a two-month low of 1.4133 and was lower against the Swiss franc, with USD/CHF easing 0.09% to 0.9654.

    Sterling came under pressure in recent sessions amid fears that a U.K. exit or Brexit from the EU in the June 23 referendum could trigger a period of uncertainty in financial markets and hit growth in the region.

    An opinion poll on Friday conducted by ORB International put support for a Brexit at 53%, against 47% for remaining.

    The Australian and New Zealand dollars were higher, with AUD/USD up 0.43% at 0.7407 and with NZD/USD adding 0.28% to 0.7075.

    Elsewhere, USD/CAD edged down 0.15% to 1.2766.

    The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at a one-week high of 94.59.


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