The dollar slipped to a four-day low against the euro and was generally softer against most other major currencies, as its rebound after last week's weakness ran out of steam and month-end adjustments created selling pressure. The dollar index, which measures the greenback against six rival currencies, was down 0.37 percent at 92.822, having erased nearly all of this week's gains.
The euro rose 0.62 percent against the greenback to $1.1921. "The dollar is fading on month-end flows," Greg Anderson, global head of FX strategy at BMO Capital Markets in New York. Market participants adjusting currency hedges for their portfolios was likely exerting selling pressure on the greenback, he said. "At month end you tend to get a lot of volatile moves. That's probably what's going on here," Anderson said.
Concerns about the progress of US tax overhaul legislation likely also weighed on the dollar, said Marc Chandler, chief global currency strategist at Brown Brothers Harriman & Co. The Republican drive to push sweeping tax legislation through the US Senate was hurtling toward a dramatic conclusion, as Republican leaders pursued behind-the-scenes deals intended to secure enough votes for passage. Sterling was up 0.9 percent to $1.3527.
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