Forex Market Update

The euro bounced back from a 12-year low versus the dollar Monday, but the shared currency is widely expected to remain under pressure as the Federal Reserve and the European Central Bank move in opposite directions on monetary policy.

Ahead of the Federal Open Market Committee policy meeting scheduled to end Wednesday, the euro EURUSD, -0.04%  was at $1.0568 after trading as low as $1.0457, its weakest against the greenback since Jan. 10, 2003. That compared with $1.0496 late Friday in New York.

Meanwhile, the dollar was little changed versus the yen USDJPY, +0.02%   at ¥121.37, compared with ¥121.43 late Friday in New York.

The ICE dollar index DXY, +0.02% a measure of the U.S. currency against a basket of six major rivals, fell to 99.70, compared with a level of 100.19 late Friday.

The WSJ Dollar Index BUXX, +0.01% a measure of the dollar against a wider basket of major currencies, was up slightly at 89.02.