The U.S. dollar snapped a three-day rising streak on Monday, as investors await comments from Federal Reserve officials to better gauge the monetary policy outlook after the central bank resumed its easing cycle last week.

The dollar hovered near levels seen before last week's Fed decision. The current pricing is consistent with the central bank's messaging, which highlighted rising concerns over the U.S. labour market as the key driver of policy, analysts said.

Last week's U.S. economic data showed the number of Americans filing new applications for unemployment benefits fell, reversing the prior week's jump.

"The lack of significant data until Friday's core Personal Consumption Expenditures (PCE) inflation release leaves investors open to rethinking Fed rate cuts and the plan ahead," said Bob Savage, head of markets macro strategy at BNY Mellon.

"Fed speakers will be important, with over 18 events planned," he added, mentioning Chair Jerome Powell, but also the Cleveland Fed's Beth Hammack and the St. Louis Fed's Alberto Musalem given their hawkish view prior to the Fed meeting.

New Fed Governor Stephen Miran on Friday defended himself as an independent policymaker after dissenting in favour of a steeper 50-basis-point rate cut, and promised to give a detailed argument for his views in a speech later on Monday.

Analysts suggested that Miran's lone dissent was a calculated move by the rest of the FOMC to show unity behind Chair Powell and reinforce the Fed's institutional independence.

U.S. President Donald Trump criticised the Fed, urging the central bank to cut interest rates more aggressively.

The dollar was slightly lower after last week's rebound when the Fed signalled little urgency to ease its policy in the coming months. It was down 0.23% at 97.43 against a basket of currencies.

Source: Investing.com