The U.S. dollar retreated from seven-month highs on Monday as investors evaluated whether the Federal Reserve will let inflation run above target before raising interest rates, and as some investors took profits from the recent dollar rally.
Fed Chair Janet Yellen said on Friday that the U.S. central bank may need to run a "high-pressure economy" to reverse damage from the 2008-2009 crisis that depressed output, sidelined workers and risks becoming a permanent scar.