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The dollar extended its decline on Monday as risk appetite in the markets temporarily increased, buoyed by positive economic data and bets that the Federal Reserve will tighten monetary policy at a slower pace.
And the US currency index, which measures its performance against six major currencies, is on its way to recording its first monthly decline in five months, after the dollar, which is considered a safe haven, lost its momentum since its sharp rise at the beginning of the year.
The dollar index is on track to fall 1.5 percent in May, although it is still up about 6 percent year-on-year. The index fell a quarter of a percentage point on Monday to 101.44.
Trading is expected to be limited on Monday as US stock and bond markets are closed for a public holiday.
Friday’s data showed US consumer spending rose more than expected in April as households bought more goods and services and inflation slowed.
Analysts say the encouraging data as well as a bet that the Federal Reserve will raise rates at a slower pace is weakening the dollar.
The euro rose against the dollar to its highest level in a month, recording 1.07705 dollars, up 0.3 percent.
The yen fell 0.2 percent to 127.330 yen to the dollar.
The British pound rose slightly, by 0.1 percent, to $1.26,400.
With regard to cryptocurrencies, the price of Bitcoin rose by four percent, but it remained at a level close to $ 30,000.
