U.S. Dollar Lower In Cautious Trade

(RTTNews) - The U.S. dollar weakened against its major counterparts in the Asian session on Monday, on growing fears about a slowdown in the economy in the wake of sharper rate hikes by the U.S. Federal Reserve.

Federal Reserve Governor Christopher Waller said on Saturday that he would back another rate hike of 75 basis point at the meeting in July.

In an interview with CBS News over the weekend, Cleveland Fed President Loretta Mester said that it will take a couple of years for inflation to move down to the central bank's 2 percent target.

Market participants await Fed Chair Jerome Powell's testimony before the U.S. Congress on Wednesday and Thursday after recent inflation fears triggered a 75 basis point rate hike last week.

U.S. markets remain closed on account of Juneteenth National Independence Day.

The greenback edged down to 0.9643 against the franc and 1.0543 against the euro, off its prior highs of 0.9712 and 1.0472, respectively. If the dollar falls further, it may challenge support around 0.93 against the franc and 1.08 against the euro.

The greenback dropped to 1.2253 against the pound and 134.53 against the yen, pulling back from its previous high of 1.2199 and a 5-day high of 135.44, respectively. The greenback is seen finding support around 1.25 against the pound and 120.00 against the yen.

Reversing from its previous highs of 0.6915 against the aussie and 1.3036 against the loonie, the greenback declined to 0.6988 and 1.2986, respectively. The greenback is likely to find support around 0.72 against the aussie and 1.26 against the loonie.

The greenback reached as low as 0.6351 against the kiwi, down from a high of 0.6295 seen at 5 pm ET. On the downside, 0.66 is possibly seen as its next support level.