The dollar held steady on Monday, its recent rally running out of steam on the back of sagging U.S. yields as investors wound back expectations that the Federal Reserve will launch a series of quick rate hikes.
The dollar index against a basket of six major currencies was little changed at 92.520. The index hit a 4-1/2-month high of 93.416 last Wednesday, as a rise in U.S. Treasury yields highlighted the wide interest rate gap between the United States and other countries. However, it drifted lower after soft April U.S. consumer price data curbed the prospect of aggressive rate hikes.
The euro was 0.05 percent higher at $1.1948, having recovered last week from $1.1823, its weakest since Dec. 22. Still, the common currency was expected to face political headwinds, limiting its bounce against the U.S. currency.
Source : Reuters