The dollar steadied on Monday after posting the biggest weekly loss in two months last week as investors grew increasingly cautious about the short-term outlook for the US currency.
The dollar was broadly grounded against a basket of rival currencies to hit a record 96.48 after falling by half a percent last week, the biggest weekly loss since late September.
The dollar made a surprise gain in 2018 and rose nearly 10 percent from its April low, thanks to higher interest rates and stronger data. But gains are ebbing amid growing belief that US economic growth may have peaked.
Despite the weakness of the dollar, the euro was unable to surpass the $1.14 level by a large margin as appetite weakened due to concerns related to negotiations between Brussels and Rome on Italy's budget plans. The euro was trading at $1.1422.
Pressure on GBP is expected to continue until markets are clearer about the progress of the UK separation agreement.
Sterling rose against the greenback 0.2% to $1.2864 after falling 1% last week as British Prime Minister Teresa May draft secession agreement was met with strong opposition and a number of ministers resigned.
