The dollar weakened past 120 per yen amid speculation the Federal Reserve will refrain from increasing its benchmark interest rate this week.

A gauge of the greenback reached a two-week low before the Federal Open Market Committee’s rate-setting meeting Sept. 16-17. U.S. consumer prices fell in August from a month earlier, according to economists’ estimates before data due Sept. 16. The yen strengthened as all except two of 35 analysts surveyed by Bloomberg predicted the Bank of Japan will maintain its policy stance at its meeting Tuesday.

The greenback fell 0.3 percent to 120.23 yen at 5 p.m New York time, after reaching as low as 119.85. The Japanese currency appreciated 0.5 percent to 136.07 against the euro. The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, fell 0.1 percent to 1,202.87 after reaching the weakest level since Sept. 1.

Source: Bloomberg