The dollar stabilized on Monday after US inflation data showed only a modest rise last month, alleviating some concerns about the pace of US interest rate cuts next year, while the yen held steady near 156 yen to the dollar, raising the possibility of Bank of Japan intervention.
Investor sentiment also rose after Congress succeeded in avoiding a US government shutdown by passing spending legislation early on Saturday
In a week with limited transactions due to the holiday season, trading volumes are likely to diminish as the end of the year approaches
The Federal Reserve (US central bank) shocked the markets last week when it predicted a measured pace of future interest rate cuts, which led to a rise in yields on Treasury bonds and the dollar while casting a shadow over other economies, especially in emerging markets.
The dollar index, which measures the performance of the US currency against six other major currencies, settled at 107.78 on Monday, near the highest level in two years of 108.54, which it touched on Friday.
The euro settled at $1.0434, close to a two-year low reached in November. It decreased by 5.5% during the year.
The yen fell to 156.65 against the dollar, near the five-month low it touched on Friday
There was little change in the British pound, and it was traded for $1.25715, while the Australian and New Zealand dollars stabilized after touching their lowest level in two years last week.
In its latest transactions, the Australian dollar recorded $0.6247, while the New Zealand dollar fell 0.2% to $0.5645.
As for digital currencies, Bitcoin fell slightly to $94,215
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