Dollar fell in European trade on Monday against a basket of major rivals, extending losses for the second straight day and backing off five-week highs on profit-taking.
US 10-year treasury yields also slowed down ahead of more data and clues on the future path of Fed interest rates.
The Index
The dollar index fell 0.15% to 103.11, with a session-high at 103.33, after closing down 0.15% on Friday, the first loss in six days on profit-taking off a five-month high at 103.69.
The index rose 0.7% last week, the third weekly profit in a row after strong data and bullish remarks by Fed officials hurt the odds of an early Fed rate cut in March.
San Francisco Fed President Mary Dale said the US economy and monetary policies are in a good position, and it's too early to talk about rate cuts.
Atlanta Fed President Raphael Bostic said he doesn't expect a rate cut before the third quarter.
Chicago Fed President Austan Goolsbey said that any changes in policies will fully depend on data showing a clear path to 2% inflation.
US Rates
Markets are currently pricing in a 46% chance of a US interest rate cut at the March Fed meeting, with the odds for such a cut in May falling to 85%.
Now investors await a basket of important data later today on US GDP growth, unemployment claims, and personal spending to gather more clues on the likely path ahead for monetary policies.
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