The dollar is under pressure against both the pound and the euro. However, it has gained modestly against the Australian and New Zealand dollars due to worries over a virus outbreak in Singapore and Taiwan.
The Federal Reserve will release the minutes from its latest monetary policy meeting on Wednesday and the markets will be watching closely for any comments from officials and Fed Chair Jerome Powell.
Comments about the surprise jump in inflation last week are expected and investors will be looking out for any signs that monetary policy will be tightened soon.
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