The dollar hit a session low against a basket of major currencies Monday as Federal Reserve Chair Janet Yellen delivered prepared remarks about the U.S. economy.
Yellen struck a generally positive tone on the U.S. economy on Monday — despite last week's disappointing jobs report.
Speaking at an event in Philadelphia, Yellen continued to say the Fed needs to raise rates, but she stepped back from putting a time period on that plan.
The Fed funds rate probably needs to rise gradually over time, she said, and hikes should come before all of the central bank's economic goals have been fully reached.
The dollar index hit a session low of 93.85, before trading at 93.93. Against the euro, the dollar pared gains, with the common currency last trading 0.03 percent higher at $1.1367.
Earlier on Monday, having hit more than three-week lows against a basket of major currencies after a poor employment report prompted investors to rule out the chance of a hike in U.S. interest rates in June.
Friday's data showed nonfarm payrolls increased by only 38,000 jobs last month, the fewest in more than 5-1/2 years, confounding forecasts for a rise of 164,000 jobs.
Investors have almost priced out the chance of a rate increase at the Fed Reserve's June 14-15 policy review, and reduced the likelihood of a July rate hike to around 30 percent from around 60 percent.