Euro, pound hit 2-week highs

The euro and pound both rose to their highest in two weeks against the dollar on Monday as investors pared bets the Federal Reserve will hike rates at its policy meeting this week.

Sterling was close to its August 27th high, when the pound was trading above $1.55.

The euro was steady above $1.13 and touched its highest in over two weeks in Asian trade before paring gains in the European session.

Elsewhere, the dollar was down against the yen and the Australian dollar, but rose against the Swiss franc.

Sentiment on the dollar is unsteady as investors look ahead to this week’s key Fed meeting.

Expectations the central bank is ready to raise rates has driven the greenback but recent market turmoil has lowered expectations it will hike the target rate this month.

Figures from the Labor Department on Friday showed an improving jobs market but also pointed to weaker price growth that may force the Fed to refrain from acting on rates this month.