Dollar Dips On Monday’s Weak Economic Numbers

The dollar kept losses to a minimum Monday following its first drop in seven days. Conflicting reports on the future of U.S. interest rates helped European equity-index futures increase while stocks in Asia dropped.

The greenback faltered after its longest rally since January in anticipation of an announcement from Federal Reserve Chair Janet Yellen which is scheduled for 1620 GMT and will indicate the central bank’s outlook for U.S. interest rate hikes after a recent series of hawkish comments from other Fed officials has been reported.

Meanwhile, U.S. data released on Monday showed signs of weakness, with consumer spending barely rising last month. That suggested the Federal Reserve could remain cautious about raising interest rates this year even as the labor market rapidly tightens. The data offset a report from Friday that showed the economy grew faster than previously reported last quarter which revived the prospect of a Fed rate hike.

Dollar Index Flat

The dollar index, which tracks the U.S. currency against a basket of rivals, was nearly flat at 95.976 below Monday’s nearly two-week high of 96.399.

Against the yen, the dollar was steady at 113.49 yen JPY=, though below its overnight high of 113.69. The euro was also steady at $1.1197 EUR=.

Euro Stoxx 50 Index contracts signaled shares in Europe will rise as most markets open for their first trading day this week. Equity benchmarks in Australia and Shanghai slid.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped about 0.4 percent after wavering for most of the early session while Japan’s Nikkei skidded 0.5 percent as the Japanese fiscal year draws to a close at the end of this month.

U.S. crude oil slipped toward $39 a barrel in a fourth day of losses as wheat climbed.