The dollar index dropped to fresh troughs on Monday, January 15, with strength in the euro helping to push it down half a percent against a basket of six major currencies, to its lowest in more than three years.
Though the Federal Reserve is expected to continue to raise U.S. rates this year, those increases have largely been priced in and investors are starting to position for central bank action in Europe and Japan instead.
The dollar slipped to a six-week low against the yen at 110.67 yen, even as the head of the Bank of Japan reiterated his commitment to keeping yields low.
Meanwhile, the euro shot to a three-year high on Monday as optimism around growth buoyed expectations of tighter monetary policy from European Central Bank, while the chance of a pro-European Union coalition in Germany also boosted confidence in the continent.
