The dollar edged higher on Monday as investors digested a slew of monetary policy decisions by central banks last week and looked ahead to a crunch decision by the Bank of England on Thursday.
In a busy week for central banks, the European Central Bank on Thursday raised rates by 25 basis points and left the door open to more hikes, while the Bank of Japan's decision on Friday to stick with its ultra-easy policy kept the yen fragile.
The pound is changing hands near 14-month highs against the dollar on expectations UK rate rises will outpace other major economies. The pound was broadly flat at $1.28175.
Money markets place a 75% chance of the BoE opting for a 25 basis points hike and a 25% likelihood of a 50 basis point jump.
