Investing.com - The dollar edged lower against the other major currencies in quiet trade on Monday, but the greenback’s losses were expected to remain limited as comments by a Federal Reserve official sparked fresh speculation over a potential rate hike in the near future.
EUR/USD eased 0.08% to 1.1225.
The dollar found support late Friday after Boston Fed President Eric Rosengren said that low interest rates are increasing the chance of overheating the U.S. economy.
He added that gradually tightening monetary policy is appropriate to maintaining full employment.
Market participants were looking ahead to a speech from FOMC voting member Lael Brainard due later on Monday for further hints on a potential interest rate increase.
Meanwhile, the single currency remained mildly supported after the European Central Bank held back from adding additional stimulus measures last week and left interest rates on hold.
GBP/USD gained 0.33% to 1.3313.
USD/JPY dropped 0.74% to 101.96, while USD/CHF slipped 0.17% to 0.9736.
The Australian dollar was weaker, with AUD/USD down 0.23% at 0.7524, while NZD/USD held steady at 0.7317.
Elsewhere, USD/CAD gained 0.32% to trade at 1.3091, the highest since September 2.
The commodity currencies pared losses as oil prices moved back higher and erased a significant drop sparked earlier in the day by an increase in oil drilling activity in the US.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.09% at 95.24.