Investors were watching for testimony from Federal Reserve Chair Jerome Powell on Monday as well as the February jobs report at the end of the week, which will likely influence how hawkish the central bank will be going forward. Dollar index, which measures the value of the U.S. currency against six major currencies, was down 0.182% at 104.420. Reuters reports that the index fell for the first time since January last week.
Since delivering jumbo hikes last year, the Fed has raised interest rates by 25 basis points in its latest two meetings, but a slew of resilient economic data has stoked market fears that it may return to its aggressive stance. The futures market predicts that the Federal Reserve will raise interest rates by 25 basis points at its meeting on March 22. There will be a great deal of attention focused on the February jobs report scheduled for Friday and on the testimony of Fed Chair Jerome Powell on Tuesday and Wednesday.