Investing.com - The dollar remained lower against the other major currencies on Monday, as investors continued to lock in profits from the greenback’s recent rally and as trading was expected to remain quiet with no major U.S. data expected throughout the day.
The greenback has been broadly supported in recent weeks amid expectations that increased fiscal spending and tax cuts under the Trump administration will spur economic growth and inflation.
The dollar has also been boosted by the view that a rate hike by the Federal Reserve in December is a near certainty.
U.S. markets were open for only half a day on Friday due to the Thanksgiving holiday.
EUR/USD gained 0.46% to 1.0636, although the euro’s gains were expected to remain in check amid concerns over an upcoming referendum in Italy.
On December 4, Italian citizens are set to vote in a referendum on whether to overhaul their national constitution, which should help Prime Minister Matteo Renzi implement badly needed economic reforms.
The vote is widely seen as determining Renzi's political fate seeing as he may resign if a "no" vote prevails. The latest opinion polls show most Italians opposing the proposed constitutional changes.
Elsewhere, GBP/USD slid 0.34% to trade at 1.2431.
USD/JPY declined 0.75% to 112.36, off Friday’s eight-month high of 113.91 hit earlier in the day, while USD/CHF fell 0.33% to 1.0110.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.35% at 0.7470 and with NZD/USD gaining 0.40% to 0.7071.
Meanwhile, USD/CAD shed 0.32% to trade at 1.3472.
Market participants were also looking ahead to Wednesday’s OPEC meeting, amid growing uncertainty over the possibility for a production cut deal.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.32% at 101.16, pulling away from Thursday’s 14-year peak of 102.12.