The U.S. dollar index rebounded from an eight-month low on Monday ahead of central bank meetings this week, though its rise was limited by a dovish reassessment of expectations of a rate hike by the U.S. Federal Reserve compared with more hawkish banks, Reuters wrote. The U.S. dollar index rose 0.03% to 101.92 after hitting an eight-month low of 101.50 last week.

The dollar index today, meanwhile, is on track for a fourth straight monthly loss of more than 1.5% under pressure from expectations that the Fed is poised to suspend its rate hike cycle and that rates will not rise further as high as previously feared. The pound rose 0.04% to $1.2405 and the euro rose 0.06% to $1.0874.

But their gains were subdued ahead of policy meetings by the Fed and the European Central Bank and the Bank of England later this week. According to Rodrigo Catril, currency strategist at National Australia Bank (OTC:NABZY) (NAB), the market is still trying to assess how central banks will behave.

The Fed is expected to raise rates by 25 basis points, down from last year’s 50 basis point and 75 basis point increases, and the Bank of England and the ECB are likely to raise rates by 50 basis points each. The euro, which is close to a monthly gain of nearly 1.5%, received support from the ECB’s continued hawkish rhetoric and easing fears of a deep recession in the eurozone. The New Zealand dollar fell 0.05% to $0.6491 and the yen jumped nearly 0.2% to $129.62 per $1.

Earlier we reported that traders were raising bets on the decline of the Hong Kong dollar.