The US dollar nursed its wounds on Monday after dropping sharply on Friday following disappointing US growth figures. The yen took a breather on Monday after it recorded large gains following the Bank of Japan's decision to introduce a much smaller stimulus than was expected.
The dollar index, crawled back slightly, up 0.1 percent at 95.578, inching away from its Friday low of 95.384, its lowest since July 5.
US gross domestic product grew at an annual 1.2 percent in April-June, the Commerce Department said on Friday, falling far short of the 2.6 percent increase market participants had predicted.
US shares closed mixed on Friday, the last trading day of the month, as encouraging earnings from major tech companies offset negative reports from some energy firms and a disappointing GDP report.
USD/JPY fell to 101.97 on Friday from a high of 105.75 as the BOJ kept interest rates unchanged and only increased its purchases of exchange traded funds to 6 trillion yen, disappointing market hopes that it may increase its already massive bond buying program and cut its rates deeper into negative territory.
EUR/USD traded around 1.1170 at the start of the week while cable was up slightly at 1.3230, as forex investors focus on the Bank of England's decision on Thursday.
