Dollar off 20-year peak as Fed headlines big central bank week

The dollar lingered near a two-decade top on major peers on Monday, ahead of a week loaded with market holidays and central bank decisions from Washington to London and Tokyo.
The dollar index =USD, which measures the currency against six counterparts, was 0.2% stronger than Friday at 109.84, consolidating after a volatile couple of weeks that took it as high as 110.79 on Sept. 7 for the first time since mid-2002.
Investors have scrambled to price in higher U.S. interest rates and a stronger dollar, as U.S. consumer price rises have proved stubbornly persistent.
Currently, markets have priced in at least another 75 basis point increase for this week’s Federal Open Market Committee’s meeting, and 19% odds of a super-sized full percentage point bump.
This week is also smattered with holidays that could thin liquidity and result in sharper price moves, with Japan and Britain off on Monday, Australia on Thursday, and Japan again on Friday, among others.