By Gina Lee
Investing.com – The U.S. dollar was down on Monday morning in Asia, ending its weeks-long rally.
The U.S. Dollar Index that tracks the greenback against a basket of other currencies slipped 0.28% to 100.148 by 11:30 AM ET (4:30 AM GMT).
Investors flocked to the dollar in recent weeks amid continuing economic turbulence due to the COVID-19 pandemic, leading to safe-haven inflows and a dollar shortage.
But some analysts said that the dollar will continue its fall in the long term as the U.S. Federal Reserve eased monetary policy more aggressively compared to other central banks.
Meanwhile, the USD/JPY pair was down 0.13% to 107.35 as the Bank of Japan started its monetary policy meeting on Monday. The Japanese central bank is expected to consider removing limits on bond purchases and easing funding for COVID-19-hit companies.
But some investors were doubtful of what the meeting could achieve.
“It will be difficult for markets to latch onto the BOJ, because it has already reached the limit of what it can do,” Takuya Kanda, general manager of the research department at Gaitame.com Research Institute, told CNBC.
“Every economy is suffering, and all major central banks have already eased policy a lot, so it’s difficult to differentiate from one currency to the next,” be added.
Investors will additionally be monitoring news from other central bank meetings this week, with a Fed meeting scheduled to end on Wednesday and Thursday’s European Central Bank (ECB) meeting.
Johnson is returning to work on Monday after battling COVID-19.
Dollar Down as It Ends Weeks-Long Rally; Investors Watch BOJ Meeting
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