The U.S. dollar eased against a basket of major currencies on Monday after U.S. data showing retreating inflation and a downward revision to consumer spending dampened expectations for a swifter pace of Federal Reserve interest rate increases.
The dollar index, which measures the greenback against a basket of six major currencies, eased from an early 1-1/2-week high of 96.399 to a session low of 95.850 after the Commerce Department said consumer spending edged up 0.1 percent and the January reading was downwardly revised to 0.1 percent.
The data also showed U.S. inflation moderated last month, with a price index for consumer spending dipping 0.1 percent after nudging up 0.1 percent in January.
The euro gained against the dollar to $1.1215, its highest level since March 23. The data dampened expectations that the Fed would hike rates again in April or June after hawkish remarks from multiple Fed presidents last week raised expectations for a faster pace of rate increases.