RTTNews - The dollar was little changed versus other majors Monday morning in New York as traders braced for this week's slew of slew of key economic data and the Federal Reserve's next interest rate decision.
No economic reports are due Monday. However, readings on housing, consumer spending, the labor market and durable goods orders are due out later this week.
The World Bank reduced its global GDP estimate as well as the outlook for most other economies and warned of a large decline in international capital flows amidst financial market fragility and recession.
The Washington-based lender now forecasts the world economy to shrink 2.9% this year, larger than its earlier prediction of a 1.7% decrease.
The dollar continued to hold its ground versus the euro, firming up to 1.3830. The pair has been range-bound for the past week, hovering between 1.3800 and 1.4000 amid uncertainty about the economic outlook for the euro zone.
German business sentiment improved to 85.9 in June from a revised reading of 84.3 in May, a monthly survey the Munich-based Ifo Institute for Economic Research showed Monday. Economists had expected the index to rise to 85 in June.
The dollar managed to avoid falling lower versus the sterling, holding near 1.6450. Earlier in the month, the dollar ht a 6-month low of 1.6662, but has since fallen no further.
The dollar barely budged versus the yen on Monday, staying near 96. On a longer term basis, the dollar is right where it was on February 24th, having leveled off after briefly rising above 100 yen in April.
Pessimism about the economy among Japan's big manufacturers lessened notably in the second quarter of the year from the first three months, a closely watched survey revealed Monday.
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