The U.S. dollar held near a more than one-week low against a basket of major currencies on Monday as some traders who had taken bullish bets on the greenback took profits ahead of year- end, while the Canadian dollar fell on a dip in oil prices.
Trading was thin, with Australia and the London market closed for local holidays and major dealing rooms across Europe empty or operating on skeleton staffing.
Bullish bets on the dollar were popular this year on the view that an expected Federal Reserve interest rate hike and looser monetary policy abroad would boost the greenback.
The dollar will likely remain within tight trading ranges given the absence of new signals about the timing of the Fed's next rate increase, said Eric Viloria, currency strategist at Wells Fargo Securities in New York.
"Until we get stronger or more hawkish signals from the Fed, the dollar's performance could be somewhat moderate," he said.