The Dollar moved up on Monday following last week’s central bank decisions and ahead of the Bank of England meeting on Thursday.

Moves within the currency market have been dominated by efforts by central banks around the world to curtail soaring inflation, with the Dollar index registering its largest weekly fall since January last week, as the Federal Reserve left rates unchanged.

The index – which measures the greenback against six major peers – edged up 0.1% to 102.400, remaining not far off a month low of 102.00 reached on Friday. Markets in the US are closed on Monday for a holiday.

Last Thursday, the European Central Bank hiked rates by 25 basis points, leaving room for additional increases, whilst the Japanese Yen remained fragile as the Bank of Japan maintained its ultra-easy policy, Reuters reports.

The Euro fell 0.2% to $1.09275, near a one-month top, whilst the Yen held flat at 141.870, close to a seven-month low of 141.980 earlier on Monday.

Traders will be keeping a close eye on US congressional testimony by Federal Reserve chair Jerome Powell this week for indications on the future trajectory of US rate hikes.

According to MUFG currency analysts, the testimony was one of the important risk events for the greenback this week, but they forecast a similar message following the US central bank’s decision last week, the Reuters report goes on to say.

“The Fed was clear that they now felt they could slow the pace of hikes but that the decision to skip a hike this month did not mean the hiking cycle was over,” the analysts commented.

Elsewhere, in the UK, investors predict the Bank of England will increase rates by at least 25 basis points at Thursday’s meeting.

The Pound has been close to 14-month highs against the Dollar on forecasts UK rate hikes will surpass other economies. Whereas, at the time of writing, Sterling was trading broadly flat at $1.28175.