On Monday the greenback was broadly lower against a basket of other major
currencies, as uncertainty over the timing of a U.S. rate hike put pressure on demand for the dollar.
The dollar was weighed on by uncertainty over the direction of U.S. monetary policy after the Federal Reserve downgraded its forecasts for growth and inflation and lowered its interest rate projections last week.
However, analysts consider that despite the past week’s reversal the greenback is likely to continue to strengthen, with the Fed still awaited to raise interest rates ahead of other central banks.
EUR/USD advanced 0.41% to 1.0863. The common currency was underpinned after Greek authorities said on Friday that they were moving towards meeting the requirements of international creditors on a more detailed reform plan in order to secure the additional bailout funds required to prevent the country's bankruptcy.
Later Monday, ECB President Mario Draghi was to appear before a European Parliament committee, with the situation in Greece likely to be high on the agenda.
The pound became vulnerable, with GBP/USD shedding 0.30% to 1.4909.
Earlier, the Confederation of British Industry reported that its index of industrial order expectations fell to zero this month from a reading of 10 in February, while economists had expected the index to slip to 9 in March.
The dollar was lower against the yen and the Swiss franc, with USD/JPY slipping 0.15% to 119.86 and with USD/CHF edging down 0.14% to 0.9732.
In the meantime, the Australian and New Zealand were stronger with AUD/USD rising 0.35% to 0.7801 and NZD/USD gaining 0.32% to 0.7589.
The Canadian dollar was lower on the other hand, with USD/CAD adding 0.19% to trade at 1.2576.
The US is expected to issue a report on existing home sales.
