Dollar Drops Against Most Currencies

The US dollar fell on Monday after investors shunned the US dollar after doubts about the pace of economic recovery and betting that the Federal Reserve may signal another shift in its forecast this week.

The US currency fell to a four-month low against the Japanese yen, a 22-month low against the euro and a 5-year low against the franc, while gold hit a record high.

The Federal Reserve is due to meet on Tuesday and Wednesday after data showed the recovery in the US labour market and analysts expect policymakers to start preparing for another move in September.

The euro rose 0.5% to $ 1.1725 and sterling recorded $ 1.2842 while the Australian settled at 0.7134 and the New Zealand dollar at 0.6675.