U.S. Dollar Higher Before Fed Meeting

The U.S. dollar appreciated against its most major counterparts in the Asian session on Monday, as investors await monetary policy decision from the Federal Reserve for guidance on its policy action.

A two-day meeting of the Fed ends on Wednesday, with economists expecting no change to rate and QE program.

The Fed funds rate stands at 0-0.25 percent and the quantitative easing program at US$120 billion per month.

Investors will be watching Powell's remarks for indications about the strength of the economic recovery and the timing of tapering its asset purchase program.

A raft of Fed officials have suggested that the central bank should at least begin discussions on tapering amid signs of a pickup in economic activity.

This week's major economic reports include retail sales, PPI, industrial production and housing market index due on Tuesday, followed by housing starts and import prices on Wednesday. U.S. weekly jobless claims may influence trading on Thursday.

The greenback rose to 0.8991 against the franc and 109.83 against the yen, off its prior lows of 0.8978 and 109.60, respectively. The greenback is seen finding resistance around 0.92 against the franc and 112.00 against the yen.

The greenback reached as high as 1.2095 versus the euro, up from a low of 1.2112 seen at 6:15 pm ET. The greenback is likely to test resistance around the 1.18 level.

In contrast, the greenback weakened to 0.7712 against the aussie, 0.7147 against the kiwi and 1.2149 against the loonie, after falling to 0.7694, 0.7130 and 1.2168, respectively in early deals. The next likely support for the greenback is seen around 0.80 against the aussie, 0.73 against the kiwi and 1.20 against the loonie.

The greenback dropped to 1.4119 against the pound earlier in the session and held steady thereafter. The pair had ended last week's deals at 1.4111.

Looking ahead, at 2.30 am ET, Swiss producer and import prices for May are due.

Eurozone industrial production for April will be released in the European session.

Canada manufacturing sales for April are scheduled for release in the New York session.