Investing.com - The dollar was hovering at six-week lows against other major currencies in quiet trade on Monday, as demand for the euro remained strong and as investors looked ahead to U.S. housing sector data due later in the day.
Sentiment on the greenback remained vulnerable after last Wednesday’s minutes of the Federal Reserve’s November meeting showed that some officials were concerned inflation would stay below the bank's 2% target for longer than expected.
The minutes echoed comments by Fed Chair Janet Yellen earlier in the week that she was uncertain about the inflation outlook.
While a rate hike in December is still almost fully priced in, investors pared back expectations for further rate hikes in 2018.
Market participants also continued to focus on a potential U.S. tax reform plan. President Donald Trump was set to meet Senate Republicans on Tuesday to discuss the party's efforts to pass tax reform legislation.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.08% at 92.65 by 05:15 a.m. ET (09:15 GMT), just off Friday's six-week lows of 92.61.
EUR/USD held steady at 1.1929, while GBP/USD edged up 0.14% to trade at 1.3350.
The euro was boosted after data on Friday showed that German business confidence hit a record high in November.
The data came one day after official data showed exports and rising business investments were the main drivers of euro zone growth in the third quarter, indicating that the robust upswing will extend well into next year.
The single currency received an additional boost after Germany's Social Democrats' agreed on Friday to hold talks with Chancellor Merkel on renewing their outgoing coalition government.
Elsewhere, the yen was higher with USD/JPY down 0.24% at 111.26, while USD/CHF eased up 0.09% to 0.9807.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.20% at 0.7630 and with NZD/USD adding 0.22% to 0.6895.
Meanwhile, USD/CAD edged 0.11% lower to trade at 1.2697.