Dollar slips versus most majors on Fed uncertainty

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The dollar slipped against most major currencies on Monday after last week's disappointing U.S. jobs data fueled uncertainty about whether the Federal Reserve will begin to taper its stimulus program this month.

The yen fell as Japanese stocks rallied following Tokyo's winning bid to host the 2020 Olympics and as Japanese second-quarter economic growth was revised up sharply. The yen and Japanese stocks have held a strong negative correlation this year.

Data Friday showing slower-than-expected U.S. job growth in August, even as the jobless rate hit a 4-1/2-year-low, continued to weigh on sentiment, although the dollar did not undergo the mauling it took on Friday.

"We're still re-evaluating the nonfarm payrolls release on Friday," said Michael Woolfolk, global market strategist at BNY Mellon in New York. "But the market does appear to be taking this more in stride today, and sentiment is the Fed will taper in September despite the sour report."

The euro rose 0.5 percent to $1.3251, also lifted by better-than-expected euro zone sentiment data. It hit a more than one-week high of $1.3280, according to Reuters data.

The dollar index, the dollar against a basket of six currencies, was down 0.6 percent at 81.83 on Monday, extending Friday's 0.6 percent drop.

The dollar gained 0.5 percent to 99.59 yen, having hit a high of 100.10 yen, according to Reuters data. The euro rose 1.0 percent to 131.94 yen.

The Olympics win for Tokyo could translate into a big boost for the Japanese economy and a shot in the arm for Prime Minister Shinzo Abe, who is attempting to reflate the economy after decades of sub-par growth and deflation.

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Chart: Precious Metals