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Dollar Remains Stable as Traders Await Central Bank Signal

The dollar weakened at the beginning of the week ahead of meetings of central banks, including the Federal Reserve.

On Monday, the dollar index against a basket of six major currencies was little changed at 96.091, down from a mid-November high of 96.938.

The euro rose to $1.1316.
The yen was slightly lower at 113.51 per dollar.
The pound fell 0.1% to $1.3257.

The most important thing for the currency markets this week are the meetings of central banks around the world. Six G10 central banks and a handful of emerging market central banks will meet.

What investors now expect is that the Fed will announce an accelerated plan to reduce bond purchases. In doing so, it will open the door for at least one interest rate hike next year.

Also this week, the European Central Bank and the Bank of Japan will hold a monetary policy review meeting. In addition, the Bank of England the central banks of Norway and Switzerland will meet.

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