The dollar's early gains fizzled on Monday as investors squared positions before a European Union summit this week on how to tackle the economic fallout of the novel coronavirus crisis.

Italian Prime Minister Guiseppe Conte used an interview with Germany's Sueddeutsche Zeitung on Monday to repeat calls for the EU to issue common euro zone bonds to demonstrate the bloc's solidarity in the face of a pandemic likely to trigger the worst recession in years.

EU heads of governments are scheduled to hold a video summit over how to tackle the economic fallout of the crisis on Thursday, where differing views on coronabonds, mostly demanded by southern EU member states, are expected to be voiced.

Against a basket of its rivals, the dollar's early gains ran out of steam with the greenback dipping into negative territory after being up as much as 0.3% on the day. It remains within striking distance of a three-year high of nearly 103 hit last month. The dollar slipped 0.1% versus the euro but was up 0.1% on the Japanese yen. It last bought 107.71 yen and traded at $1.0867 per euro.

Source : Reuters