The dollar started Monday trade on a firm footing, having recovered recent losses as major central banks were quick to burnish their dovish credentials after the Federal Reserve last week delayed a long-anticipated hike in U.S. interest rates.
Further lifting the mood of dollar bulls were comments from a top Fed policymaker, John Williams, who said a rate hike this year is still likely given the decision to stand pat was a “close call”.
The dollar index was back at 95.305, well off a three-week low of 94.063 set on Friday. Against the yen, the greenback popped to 120.08, rebounding from a trough around 119.04.
The euro slid to $1.1285, having recoiled from Friday’s peak of $1.1460. Traders said failure to close at a technical level above $1.1400 had also prompted some selling in the common currency. It has now retraced about 50 percent of this month’s rally from $1.1087 to $1.1460.