Dollar mixed in quiet trading

NEW YORK (CNNMoney.com) -- The dollar was mixed in quiet trading Monday as investors shied away from more risky assets amid uncertainty about U.S. monetary policy and ongoing concerns about Greece's debt situation.

What prices are doing: The dollar was flat against the euro at $1.3610 and rose 0.1% versus the U.K. pound at $1.5490. Against the Japanese yen, the dollar fell 0.4% to ¥90.17.

What's moving the market: The mixed action in the currency market came as stock recovered from earlier loses to post modest gains near the close of trading.

Stocks were pressured earlier in the day as investors turned cautious amid worries about the outlook for the U.S. economy, the debt situation in Greece and the pace of growth in China.

Many traders see the dollar as a safer alternative to more risky assets. As a result, the greenback often climbs when stock and commodity prices fall.

But analysts said trading was subdued Monday due to a lack of economic reports.

"This is the type of price action that we would typically expect on a holiday," said Kathy Lein, director of currency research at trading firm GFT. "But with all of the major markets open for normal trading hours, the movements in the financial markets are more indicative of hesitation."

Looking ahead, analysts said the market will remain focused on concerns about Greece and the future of U.S. monetary policy.

The Federal Reserve caught some investors off guard last week when the central bank raised its discount rate, which is what banks pay to borrow directly from the Fed, to 0.75%.

The move was largely symbolic since that rate affects virtually no borrowing at present. But it raised some speculation in the financial markets about the timing of an eventual hike in the fed funds rate, the Fed's main interest rate, which is a benchmark for various rates on commercial loans.

What analysts are saying: "This week's highlight will come with developments in the Greek bond market and Chairman Bernanke's testimony," said Camilla Sutton, currency strategist at Scotia Capital, in a research report.

Bernanke will deliver the Fed's semiannual monetary policy report to Congress on Wednesday.

"Last week's increase in the discount rate created a stir, even though the Fed had warned that this was approaching and that it should not be interpreted as tighter monetary policy," she added.