The opening of the Asian session saw the greenback dollar trade little changed, but higher against the safe-haven currencies of the Swiss franc and the Japanese yen.
The limited movement exhibited by the US dollar was seen as opposed to the 10 -year US treasury yield which soared higher to touch the 1.50% level during the previous session.
According to analysts, the drastic surge in bond yields and the decline in the Dow Jones stock index reflect market confidence that the Federal Reserve (Fed) will begin talks on reducing bond purchases (tapering) this week.
However, the barely unchanged movement of the US dollar against the euro, Aussie dollar, kiwi and loonie, also indicates not all investors are confident that the Fed is ready to discuss tapering.
However, if bond yields continue to maintain their strengthening momentum ahead of Wednesday's policy decision, most other major currencies are expected to risk lower depreciation.
The US retail sales data to be published tonight will be the main focus for the market to be the next indicator of the direction of the Fed's monetary policy.
Meanwhile, the UK has officially announced to postpone plans to lift the ban for a month until July 19 to curb the spread of the Covid-19 variant of the Delta in the UK.
The pound changed little following the announcement, as it had fallen lower at the opening of the European session. The publication of UK employment data and a speech by Bank of England (BOE) Governor Andrew Bailey will be the main focus of investors today.
