The greenback dollar traded slightly higher in the European session, erasing some of the losses recorded at the end of the week following a less encouraging reading of U.S. jobs data.
The rise was driven by a recovery in 10 -year U.S. treasury yields which rose higher at 1.32%.
However, the giant was still trading around a nearly one -month low against its main competitor, with the dollar index trading at 92.28. Currency movements may be limited today as the US market is on holiday.
The antipodean currency, the Aussie dollar capped its gains on Monday, as Victoria, the second-largest state in Australia saw an increase in Covid-19 cases.
The focus is now targeted on the Reserve Bank of Australia (RBA) on Tuesday which is expected to re -postpone the central bank’s plans to reduce bond purchases.
Moreover, the kiwi dollar also depreciated even after New Zealand Prime Minister Jacinda Ardern announced nationwide sanctions would be lifted, other than Auckland, starting Wednesday.
The euro also cut gains slightly to 1.18600 against the US dollar, as market focus is now on the European Central Bank's (ECB) policy meeting on Thursday.
In addition, the pound remained traded at a two -week high, but declined slightly following the impact of the still unresolved Northern Ireland issue, prompting UK Brexit ministers to warn that if the problem persists, it could affect relations between the UK and the EU.
