On Monday the euro held gains versus the softer dollar despite the data which showed that euro zone inflation remained low in August and added to bets that the European Central Bank may extend its
stimulus program.
EUR/USD was last at 1.1207, up 0.18% stepping off early highs of 1.1262.
Earlier, Eurostat reported the annual rate of inflation in the single currency bloc rose 0.2% in August, unchanged from the previous month, but slightly higher than forecasts of 0.1%.
The central bank targets inflation of near, but just below 2%.
Core inflation, which excludes food and fuel costs, remained steady at 1.0%.
Last week, the ECB’s chief economist cautioned that risks to the bank's medium-term inflation target have risen and signaled the bank is ready to expand its economic stimulus program if necessary.
ECB Executive Board member Peter Praet said lower commodity prices and signs of economic weakness mean there is an increased risk that the euro area will miss its inflation targets.
On Thursday the ECB will hold its next policy meeting, and at the press conference that will follow, President Mario Draghi will announce the latest growth and inflation projections.
The euro and the yen had risen against the dollar earlier Monday as renewed weakness in equities markets overnight pressured the greenback lower.
USD/JPY was last at 121.35, lower 0.29%.
