Dollar Dips Amid Fed Talks and Global Currency Movements

The U.S. dollar was on the verge of ending a three-day rise against the euro and Swiss franc on Monday. This shift followed remarks from Federal Reserve officials about the current monetary policy outlook. Analysts pointed out rising concerns about the U.S. labour market as a pivotal factor in the Fed's policy direction.

The St. Louis Federal Reserve President supported a precautionary rate cut to protect jobs, but acknowledged limited potential for further reductions due to inflation. A new Fed Governor's dissent in favor of a more substantial rate cut was seen as a strategic move to maintain the Fed's independence.

Globally, the euro, yen, and Swedish crown appreciated against the dollar. Political uncertainties in Japan and an upcoming policy meeting in Sweden influenced these movements. Meanwhile, sterling and the Australian dollar experienced minor fluctuations against the U.S. dollar, amid local and global economic factors.

(With inputs from agencies.)