The U.S. dollar struggled to maintain its gains late last week after being supported by strong U.S. data readings and the possibility that the Federal Reserve (Fed) is poised to ease its stimulus.
Against a basket of major currencies, the dollar index traded positive around a 3 -month low of 90.05 at the opening of the Asian session.
Among the key factors supporting the appreciation of the US dollar was a much better -than -expected reading of manufacturing and services PMI data in April.
In addition to data from the US, the market is also shown with readings from the European Zone, the UK and Australia. However, due to the mixed readings published, and the better American recorded figures, the US dollar became more attractive.
In addition, the US dollar also rose following statements by some Fed policymakers who suggested faster talks on tapering in its quantitative easing amid rising inflation.
On Friday, Atlanta Fed President Raphael Bostic expressed his concern about growing inflation, while Philadelphia Fed Patrick Harker said the central bank should start discussing tightening.
Meanwhile, Dallas Fed President Robert Kaplan reiterated that he sees a lot of uncertainty about inflation.
