The USD slipped lower
Focus on the yen and the Bank of Japan (BOJ)
Expect further changes in the BOJ's yield control policy
Early trading in the week saw the US dollar remain trading lower as investors focused on the Bank of Japan's (BOJ) policy meeting on Wednesday.
In the Asian session, the yen remained firm near a 7-month high on expectations that the central bank will make further changes to yield control (YCC) policy.
The BOJ's yield curve control policy has been a big factor behind the yen's 12% decline last year, and since the central bank's surprise decision last December to widen its yield target, the yen has surged more than 6%.
On the other hand, the greenback continues to struggle to recover from last week's fall after data showed US consumer prices slipped lower last month.
Against most major currencies, the dollar index traded below 102.00.
Meanwhile, the euro continued to strengthen at 8-month highs even as price movements remained flat from last week's close.
The pound also traded stronger after hitting a one-month high on Friday, with investors focused on the release of UK inflation and jobs data.
In addition, the risk-sensitive currencies of the Aussie and New Zealand dollars also traded higher ahead of the release of China's fourth-quarter gross domestic product (GDP) data.
Finally, the Canadian dollar remains stronger against the US dollar as investors await the release of Canadian inflation data.
