The dollar rose on Monday against a basket of currencies as US bond yields climbed and traders waited for a Federal Reserve meeting and a US jobs report later in the week, while the euro and pound were both broadly down. Against a basket of currencies, the dollar index rose 0.36 percent to 89.389 after scoring six consecutive weeks of losses.
On a monthly basis it is set to fall 3 percent. As the greenback rose, the euro fell 0.43 percent, while the British pound decreased 0.61 percent. "Most market players are long euro right now, short dollar across the board," said Douglas Borthwick, a managing director and head of FX at Chapdelaine Foreign Exchange in New York. "Overnight we saw profit-taking. Not on the back of any news, but just on the back of folks having sizeable positions already in place."
Borthwick added that traders are feeling some uncertainty going into this week's Fed meeting. "Depending on the new Fed leadership, which is being run now by (Jerome) Powell, the market is concerned about whether we're going to see continued rate rises at the current velocity that's expected or whether it's going to be increased somewhat," he said.