The question of when to raise borrowing costs will likely be addressed on Wednesday when the FOMC makes its latest policy statement. And of course the major economic news of the week will be the release of nonfarm payrolls for July due on Friday morning.
Price swings in the dollar against the yen measured by options fell to a record as signs of an uneven U.S. economic recovery fueled bets the Federal Reserve will keep borrowing costs at unprecedented lows.
U.S. stocks declined, sending equities to a second day of losses after reaching all-time highs, as data showed home prices rose at a slower pace than forecast and investors watched developments in Iraq.
The dollar extended its streak of declines to the longest since April as economists forecast reports this week will show slowing factory output and a smaller gain in new home sales in the world’s largest economy.