Investing.com - The dollar traded lower on Monday on concerns that a lukewarm March jobs report will mean dovish comments will arise in the minutes of the Federal Reserve''s March policy meeting due for release on Wednesday.
In U.S. trading on Monday, EUR/USD was up 0.27% at 1.3740.
The dollar weakened as markets prepped for Wednesday''s minutes of the Fed’s March meeting.
On Friday, data revealed that the U.S. economy added 192,000 jobs in March, below expectations for jobs growth of 200,000.
The U.S. unemployment rate remained unchanged at 6.7%, compared to expectations for a downtick to 6.6%.
The numbers sparked expectations that even though the Federal Reserve will continue to dismantle its monthly bond-buying program, the pace at which it closes the program remains up in the air.
Fed asset purchases, which currently stand at $55 billion a month, aim to drive recovery by suppressing long-term borrowing costs, weakening the dollar as a side effect.
The euro, meanwhile, received a shot in the arm after ECB policymaker Yves Mersch said earlier that while monetary authorities are working on plans to purchase assets to steer the euro zone away from deflationary purchases, such a program is not required yet, while Governing Council member Ewald Nowotny made similar comments.
Separately, Bundesbank President Jens Weidmann said that monetary policy cannot solve the financial crisis, and urged euro zone political leaders to enact fiscal and other reforms.
The comments came after ECB President Mario Draghi said last week that unconventional monetary policy instruments may be necessary to avert the risk of ongoing low inflation becoming entrenched in the euro zone.
The dollar was down against the yen, with USD/JPY down 0.16% at 103.11, and down against the Swiss franc, with USD/CHF down 0.40% at 0.8880.
The greenback was down against the pound, with GBP/USD down 0.20% at 1.6608.
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.09% at 1.0970, AUD/USD down 0.24% at 0.9270 and NZD/USD up 0.10% at 0.8608.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.26% at 80.35.
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