The dollar was on the back foot on Monday after sustaining its biggest weekly drop in four months last week as traders remained cautious about the prospects of trade talks between the United States and China at this week's G20 summit.
The greenback has been on the receiving end of a broad market selloff in major currencies as global central banks led by the U.S. Federal Reserve signaled a dovish outlook on monetary policy due to growing signs of a weak global economy.
The dollar fell 1.4% against other currencies last week, its biggest weekly drop since mid-February. On Monday, it edged 0.1% lower to 96.11.
But the selloff has raised concerns that markets have turned excessively bearish against the dollar, especially since the Fed has the most room to cut interest rates relative to its peers, such as the European Central Bank, where rates are already in negative territory.
Source : Reuters