The US dollar traded steady in the Asian session after rebounding from a one -month low, while the euro sank lower following gloomy expectations of the European Central Bank's (ECB) policy decision.
At the time of writing, the dollar index which measures the strength of the greenback dollar against a group of major currencies traded up at 93.87.
The market focus this week was on the ECB and Central Bank of Canada (BOC) central bank meetings.
The ECB policy meeting, which will take place on Thursday, is expected to end with loose and dovish policy decisions.
According to analysts, the ECB may extend the Covid-19 emergency bond-buying program and insist that the rise in inflation is temporary as a dovish measure.
If the ECB gives a hawkish statement, the central bank may see inflation continue and indicate that the PEPP will end or give an indication of a rate hike in the future.
In the Asian session, the euro depreciated around 1.1600 against the US dollar, seeing investor anxiety ahead of the ECB meeting.
German business sentiment data of the Ifo survey published on Monday showed a gloomy reading for October, signaling investor distrust following supply chain problems affecting businesses.
