A lack of clarity regarding whether the U.S. Federal Reserve will reduce its economy-spurring monetary stimulus measures weighed on the world's reserve currency on Monday in advance of the Fed's two days of meetings scheduled for Tuesday and Wednesday of next week, Bloomberg reports.
The dollar also was dragged down by the weaker-than-anticipated jobs report released late last week. The monetary unit was slipping though the jobless rate fell to its lowest level since early 2009.
Also impacting the U.S. dollar on Monday was apprehension about the U.S. Congressional vote regarding the use of force against Syria, The Wall Street Journal reports. The nation stands accused of deploying sarin gas against its on people near Damascus on August 21.
"It is going to be very difficult to call the result beforehand as so few politicians seem to have decided which way they will vote," said Steven Barrow, a currencies analyst at Standard Bank, noting "Syria and Fed tapering will remain the dominant issues."
Reuters reports thus far this year the dollar index has gained 2.8 percent. The metric measures the value of the dollar against its major rivals.
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