The dollar is hovering around its lowest level in 15 months before the Fed and ECB meetings. For its part, the pound stable at around $1.31 with inflation data in its sights

The dollar fell slightly against a basket of currencies on Monday after suffering its biggest weekly drop of the year.

The euro continued to climb, rising 0.1% to $1,1234, after reaching a new high 16 months earlier in the day. Against the yen, the dollar fell 0.28% to 138.36 yen per dollar, after reaching its lowest level against the Japanese currency in two

According to Francesco Pesole, foreign exchange strategist at ING, “The euro/dollar seems a bit too tight in the short term and could see a correction this week,” he added. The US dollar index fell by 0.07% to 99.891

The Australian and New Zealand dollars fell, with Aussie losing 0.36% to $0.6814 - below last week's peak of $0.6895 - and the kiwi losing 0.48% to $0.6338 after reaching a five-year high of $0.6412 on Friday.

The Swedish and Norwegian crowns have continued their rise after gaining more than 5% against the dollar last week. The Swedish krona rose by 0.2% to 10.2360 against the dollar, the Norwegian krone instead rose by 0.4%

The pound hovered around $1.31 against the dollar on Monday ahead of a crucial inflation report, while speculators raised their bullish positions on the currency to the highest since 2014, data showed Friday. The pound was little changed against the dollar, at $1.3094

The euro was up 0.1% against the pound, at 85.88 pence, its highest level in nine days.