The US dollar index hovered around 103.7 on Monday, hovering close to five-month lows as trade uncertainties and mounting economic concerns in the US weighed on the currency.

Data released on Friday showed that US consumer confidence dropped to an over two-year low in March and inflation expectations soared as President Donald Trump's escalating tariffs stoked economic concerns.

Investors now await US retail sales data on Monday to gain insight on consumption trends. Markets also looked ahead to the latest Federal Reserve policy decision on Wednesday, where it is widely expected to hold interest rates steady.

Externally, the dollar faced downward pressure from the euro after Germany agreed on a fiscal deal that could boost defense spending and revive growth in Europe's largest economy.

Source: Trading Economics