The dollar clung to a recent bounce on Monday as investors made a cautious start to a week crammed with central bank meetings and big-ticket U.S. economic data, waiting for clues on the outlook for global inflation and for policymakers’ responses.
Trade was thinned by holidays in Japan and China, which kept a lid on volatility, leaving the greenback to trade where it settled after a Friday leap. It held at $1.2020 per euro and crept to a three-week high of 109.58 yen .
The dollar index , measured against six major currencies, held at 91.322.
The index dropped 2% through April as a positive view of global recovery prospects lifted trade-exposed currencies at the dollar’s expense, but bounced with upbeat U.S. consumption data on Friday.
“We expect the dollar to trend lower because of the…