Dollar Falls to 3-Year Low; U.S. Data Could Limit Further Losses

The dollar fell to another three-year low against a basket of currencies on Monday due to concerns about rate-cut prospects.

However, ING's Francesco Pesole said upcoming U.S. data could limit losses for the U.S. currency as they might prompt investors to trim bets on rate cuts. The nonfarm payrolls report on Thursday could show a gradual slowdown in jobs growth but not enough to trigger heavy bets on a July rate cut, he said.

Inflation could also rise in coming months. "Some short-term support for the dollar should emerge," said Pesole.