Investing.com - The dollar was subdued against its currency peers on Monday after the greenback broadly retreated in recent days as investors weighed downbeat U.S. economic data.
A survey last week revealed that U.S. business activity nearly stalled in February, reaching a 17-month low, amid mounting concerns over import tariffs and significant federal spending cuts.
Additionally, the University of Michigan’s consumer sentiment index was revised downward to 64.7 in February from a preliminary 67.8, marking the lowest level in 15 months, suggesting that the potential inflationary impact of President Donald Trump’s tariff plans were fueling worries over the purchasing power of U.S. shoppers.
More economic data is due out this week, including the personal consumption expenditures price index for January -- a key metric of inflation that is closely monitored by Federal Reserve policymakers.
The U.S. dollar index, which measures the greenback against a basket of major currencies, was mostly unchanged at 106.63 at 09:15 ET (14:15 GMT).
Meanwhile, the euro strengthened slightly against the dollar to $1.0465 and sterling rose versus the dollar to $1.2639.
Bank of Korea expected to cut rates this week
Elsewhere, the South Korean won’s USD/KRW pair climbed, as traders looked ahed to a policy decision from the Bank of Korea this week.
The BoK is scheduled to announce its interest rate decision on Tuesday amid a backdrop of economic challenges and political instability. Analysts widely anticipate a 25-basis point reduction in borrowing costs, lowering the policy rate from 3.00% to 2.75%.
In January, the BoK unexpectedly maintained the interest rate at 3.00%, aiming to support the won, which had been weakening partly due to political uncertainties.
(Ayushman Ojha contributed reporting.)