Dollar near Two-Month Top after US GDP Boosts Yield Appeal

The dollar hung on to a two-month high against a basket of currencies in Asia on Monday after better-than-anticipated U.S. GDP data last week increased its yield attractions against rival currencies.

The U.S. Federal Reserve is widely expected to cut interest rates for the first time in more than a decade this week, but such a  move is broadly seen as a precautionary one to protect the economy from global uncertainties and trade pressures, just the opposite some countries that face imminent risks.

The dollar index stood little changed at 97.980, after having hit a two-month high of 98.093 on Friday. Against the Japanese yen, the dollar skidded %0.12 to 108.53 yen due largely month-end selling by Japanese exporters after having hit a two-week peak of 108.83 yen on Friday.