WASHINGTON (dpa-AFX) - The U.S. dollar shed ground against some of its major counterparts on Monday, weighed down by a drop in bond yields.
The dollar swung between gains and losses against a few major rivals as traders closely followed and reacted to U.S. President Donald Trump's policy and tariff moves.
Investors also looked ahead to monetary policy announcements from the Federal Reserve, the European Central Bank and the Bank of Canada, due this week.
The Fed is widely expected to leave interest rates unchanged, but traders are likely to pay close attention to the accompanying statement for clues about the outlook for rates.
Recent economic data has led to concerns about the Fed leaving rates on hold for a prolonged period, but many economists still expect the central bank to resume cutting rates sometime in the first half of the year.
CME Group's FedWatch Tool is currently indicating a 78% chance rates will be lower by at least a quarter point following the Fed's June meeting.
On the economic front, new home sales in the U.S. surged by much more than expected in the month of December, according to a report released by the Commerce Department.
The report said new home sales shot up by 3.6% to an annual rate of 698,000 in December after soaring by 9.6% to an upwardly revised ate of 674,000 in November.
Economists had expected new home sales to climb 0.9 percent to an annual rate of 670,000 from the 664,000 originally reported for the previous month.
Against the Euro, the dollar firmed to 1.0494 after having weakened to 1.0533 earlier in the day. The dollar weakened to 1.2501 against Pound Sterling.
Against the Japanese currency, the dollar weakened to 154.50 yen, nearly 1% down from previous close. The dollar gained against the Aussie, strengthening to 0.6294 from 0.6314.
Against Swiss franc, the dollar weakened to CHF 0.9020, and against the Loonie, the dollar gained marginally, firming to 1.4376.
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