The U.S. dollar slipped on Monday from a nearly four-month high touched Friday after comments from the U.S. Federal Reserve's vice chairman stoked uncertainty over whether the U.S. central bank would hike rates in September.
Fed Vice Chairman Stanley Fischer told Bloomberg TV that the global deflationary trend "bothers" the Fed, but is one of many factors the U.S. central bank is watching.
Analysts said his comments on the whole cast some doubt on the likelihood that the Fed will hike rates for the first time in nearly a decade next month.
"What we're seeing right now in the market is that reflection of the uncertainty surrounding the timing of the first Fed hike," said Sireen Harajli, a foreign exchange strategist at Mizuho Corporate Bank in New York.
The dollar index, which measures the greenback against a basket of major currencies, hit its highest level in nearly four months on Friday of 98.334 after a solid U.S. jobs report for July supported expectations that the Fed would hike in September.