US dollar falls on policy uncertainties

The US dollar declined against most major currencies following weak US inflation readings.

In late New York trading on Monday, the euro rose to $1.1825 from $1.1754, and the British pound climbed to $1.3193 from $1.3143, Xinhua news agency reported.

The Australian dollar increased to $0.7990 from $0.7989.

The US dollar bought 110.37 Japanese yen, lower than 110.68 yen of the previous session. The US dollar fell to 0.9663 Swiss franc from 0.9687 Swiss franc, and it edged up to 1.2478 Canadian dollars from 1.2444 Canadian dollars.

The dollar has struggled as weak US inflation readings last week dampened expectations for hawkish Federal Reserve policy.

Meanwhile, analyst said the greenback was under pressure as recent political uncertainty in Washington has caused concerns about whether the Donald Trump administration could deliver on its campaign promise in fiscal stimulus and tax cuts.

The dollar index, which measures the greenback against six major peers, was down 0.31 per cent at 92.967 in late trading.

--IANS

pgh/