Sharjah24 – Reuters: The dollar slipped as European markets opened on Monday, but was still near a five-year high versus Japan's yen as investors braced for a busy week of major central bank meetings.

Currency markets were also driven by expectation that the U.S. Federal Reserve will raise rates at its meeting this week, which ends on Wednesday.

Investors were pricing in 93% chance of a 25 basis point hike. IRPR

Federal Reserve Chairman Jerome Powell last week flagged multiple interest rate increases this year.

The dollar index rose during Asian trading, coming close to a 22-month high as the rate-sensitive short term U.S. Treasury yields rose, but it then edged lower as European markets opened. Read full story

At 0857 GMT, the dollar index was down 0.1% on the day at 98.886 =USD.

The U.S. dollar hit a five-year high against the Japanese yen overnight, at 117.88, as investors bet that the Bank of Japan, which meets on Friday, would maintain its dovish stance despite rising inflationary pressures. Read full story

At 0900 GMT, the pair had eased to 117.775 JPY=EBS.

The British pound was still near a 16-month low, flat on the day at $1.30415, ahead of the Bank of England meeting on Thursday.

The euro was up 0.5% at $1.0953 EUR=EBS.

The Australian dollar was down 0.6% AUD=D3, hurt by the easing of commodity prices, while the New Zealand dollar was down 0.2% NZD=D3.

The dollar hit 6.382 versus the offshore yuan, the yuan's weakest in more than a month CNH=EBS.