The dollar eased against the euro and the yen on Monday, a day ahead of a Federal Reserve meeting and the release of US retail sales data, but losses were capped because the Fed is seen less likely to further ease policy after recent strong jobs data. A lack of liquidity exacerbated volatility on Monday.
The euro was last up 0.3 percent at $1.3145 midway through the New York session, after earlier dipping to its lowest level since February 16. The session peak of $1.3152 was touched after the euro broke through minor technical resistance. The dollar index rose to 80.132, its highest level since January 25, before slipping back to 79.876. The dollar slipped 0.3 percent against the yen to 82.19 yen as investors bet that this year's 6.8 percent advance in the greenback against the Japanese currency is too far, too fast, particularly after touching a near 11-month high on Friday.