TOKYO/LONDON—The dollar edged toward a five-week high versus major peers on Monday as the Japanese yen slid and investors increased bets on the Federal Reserve keeping monetary policy tight for longer.
The major event this week will be the release of U.S. consumer price data on Tuesday, which will drive expectations for the Fed’s policy.
The dollar rose 0.7 percent to 132.48 yen, as traders reassessed their expectations of the policy stance of the likely new Japanese central bank governor, who is due to be officially announced on Tuesday.
The euro and pound were both steady on the day against the dollar, with the European common currency at $1.0685 and sterling at $1.206, leaving the dollar index, which tracks the U.S. currency against six major peers, at 103.61….