The dollar fell against the euro on Monday in illiquid trade, but optimism about the U.S. economy despite the Federal Reserve starting to withdraw some of its stimulus capped the currency's losses.
Major currencies were in a holding pattern due to a holiday in Japan, while for most of Europe it was the last full trading session before a Christmas break. That left many investors and speculators to square positions and trim long dollar positions before year-end.
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Sentiment globally was underpinned by Friday's upbeat U.S. GDP data and the Federal Reserve's decision last week to start scaling back its bond-buying stimulus.