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The dollar rose against a basket of currencies in overnight trading but slid in London trading. This came after Friday’s data on U.S. employment prompted a rally.
A recovery in U.S. employment data showed signs of a faster economic revival. However, the price rally paused in European trade as soon as the cautious sentiment kicked in.
The New Zealand dollar rose to its highest in four months. This followed its government’s announcement to lift all lockdown measures after successfully eliminating the domestic transmission of COVID-19.
The dollar index stood at 96.82 at 0740 GMT.
The euro surged to $1.1299. It hit a three-month high last week after the European Central Bank announced that it will expand its stimulus programme.
Investors await further information on the EU recovery fund expected to shore up European economies heavily affected by the pandemic.
The Japanese yen rose to 109.53 on the dollar, while the Swiss franc lost 0.2% on the dollar and the euro.
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