Dollar holds steady vs. rivals, as Fed statement still supports; Russian ruble gains

On Monday the US dollar was little changed against the other major currencies, moving towards five-year highs as expectations for a U.S. rate hike next year continued to support demand for the greenback. The Russian ruble gained ahead of major month-end tax payments in Russia.

Trading volumes were expected to remain light this week with many investors away for the Christmas holiday and ahead of the New Year's holiday.

The dollar remained broadly supported after the Federal Reserve signaled last week that it was on track to raise interest rates next year but said it was taking a patient stance. The central bank also acknowledged the improvement in the U.S. labor market and noted that the economy is making progress toward its goals in inflation and employment.

The U.S. dollar index, which measures the greenback against a basket of six major currencies, was steady at 89.79, not far from Friday's five-year high of 89.88.

Later in the day, the U.S. was to release on existing home sales.

Earlier on Monday, official data showed that German import prices dropped 0.8% in November, compared to expectations for a 0.5% loss, after a 0.3% downtick in October.

EUR/USD rose 0.23% to 1.2254, easing off two-year lows of 1.2222 hit overnight.

The greenback slipped from two-year highs against the Swiss franc, with USD/CHF down 0.20% to 0.9820, while USD/JPY rose 0.38% to 119.91.

The Russian ruble remained higher, with USD/RUB down 6.36% to 55.15, as continued to gain support ahead of major month-end tax payments in Russia.

Last week the ruble hit record lows after a surprise interest rate hike failed to ease selling pressure on the currency from falling oil and western sanctions. Elsewhere, the pound held steady, with GBP/USD at 1.5618.

The Australian dollar held steady, hovering close to four-and-a-half year lows, with AUD/USD at 0.8144, while NZD/USD edged up 0.16% to trade at 0.7756 and USD/CAD added 0.17% to 1.1625.