Investing.com - The dollar erased gains against the other major currencies on Monday, as sentiment on the greenback became fragile ahead of the Federal Reserve's highly-anticipated policy meeting this week.
USD/JPY slipped 0.16% to 120.80.
Most investors expect the Fed to raise interest rates for the first time since June 2006 at its upcoming meeting on December 15-16.
Higher interest rates would make the U.S. dollar more attractive to yield-seeking investors.
EUR/USD rose 0.25% to 1.1021.
Data earlier showed that euro zone industrial production rose 0.6% in October, beating expectations for a 0.3% gain, after a 0.3% fall the previous month.
Elsewhere, the dollar remained higher against the pound, with GBP/USD down 0.51% at 1.5139 but was lower against the Swiss franc, with USD/CHF edging down 0.16% to 0.9812.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.91% at 0.7254 and with NZD/USD gaining 0.86% to 0.6772.
The move came after the PBOC indicated Friday that it may ease its loose peg to the dollar and allow the yuan track a broad basket of currencies of China's trading partners.
Such a move would reduce China's demand for dollars.
Meanwhile, USD/CAD fell 0.16% to trade at 1.3732, but still remained within close distance of an 11-1/2 year high of 1.3782 hit earlier in the day.
The commodity-related loonie remained under pressure after oil prices fell to the lowest levels since February 2009 earlier Monday, as ongoing worries over a global supply glut continued to weigh.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.09% at 97.52, after rising to 97.99 earlier in the session.
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