LONDON (AFP) - The dollar climbed against the euro and yen on Monday as the market looked ahead to a meeting of the US Federal Reserve as well as a Group of 20 summit this week.
The European single currency fell to 1.4656 dollars from 1.4740 dollars late in New York on Friday.
Against the Japanese currency, the dollar rose to 92.06 yen from 91.35 yen on Friday.
Traders were awaiting the meeting of the Federal Open Market Committee beginning on Tuesday followed by the G20 summit later in the week.
"The recent dollar strength coming back into play has been attributed to this weeks FOMC interest rate meeting in the US," said Phil McHugh at currenciesdirect.com.
"The expectation is growing that the Fed will discuss exit strategies (from its massive economic stimulus programs) in the near future and this will signal a hawkish tone with the potential for interest rate rises to follow," he added.
Federal Reserve policy-makers may on Wednesday formally acknowledge an economic recovery is under way but will make few changes to their vast stimulus effort until they see a sustainable expansion, analysts said.
A two-day meeting of the FOMC opening on Tuesday is widely expected to leave unchanged the central bank's near-zero interest rate policy, while making only minor changes to the array of liquidity programs to keep credit flowing.
Fed chairman Ben Bernanke last week said the US recession "is very likely over" but that the economy remains weak due to difficult credit conditions and high unemployment.
Following the Fed meeting, attention will turn to the G20 summit in the US city Pittsburgh on Thursday and Friday.
Leaders from the world's 20 most powerful economies will likely affirm at the summit that the global economy is clawing its way back from recession, led by growth in Asia and a tepid rebound in other regions.
The G20 leaders will consider unwinding the unprecedented support to help recovery but are expected to be cautious on any move for fear of jeopardising a return to growth.
In London, the euro was changing hands at 1.4656 dollars against 1.4740 dollars late on Friday, at 134.86 yen (134.36), 0.9059 pounds (0.8939) and 1.5158 Swiss francs (1.5147).
The dollar stood at 92.06 yen (91.35) and 1.0340 Swiss francs (1.0299).
The pound was at 1.6185 dollars (1.6468).
On the London Bullion Market, the price of gold fell to 999.25 dollars an ounce from 1,012 dollars an ounce late on Friday.
