The U.S. dollar weakened against other major currencies on Monday, as a drop in U.S. treasury yields amid rising hopes the interest rates will remain near zero levels for longer duration.

Fed officials have been regularly hinting that the central bank will continue to hold interest rates near zero for the foreseeable future. Christophen Waller, the newest governor on the Federal Reserve’s Washington-based board, said on Friday that any accompanying spike in inflation will prove short-lived- echoing the view of most U.S. central bankers.

The dollar index dropped to more than one-month low, sliding to 91.03, and losing about 0.6%.

Against the Euro, the dollar weakened to 1.2038, losing nearly 0.5%. The euro area current account surplus declined in February largely due to a fall in the goods trade surplus, data published by the European Central Bank showed. The current account surplus totaled EUR 26 billion versus a EUR 35 billion surplus in January.

The surplus on goods trade fell to EUR 32 billion from EUR 38 billion and that on services trade decreased to EUR 11 billion from EUR 12 billion in the previous month.

The Pound Sterling firmed up against the dollar, fetching $1.3986 a unit, more than 1% from previous close.

The Yen was stronger at 108.14, gaining from around 108.75. The greenback shed ground against the loonie and the Aussie as well.

The material has been provided by InstaForex Company – www.instaforex.com

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