Dollar Extends Drop, Remains Vulnerable After Fed Steer

The employee of a currency exchange shop counts U.S. dollar banknotes in Ciudad Juarez, Mexico, on July 27, 2023. Jose Luis Gonzalez/Reuters

LONDON—The U.S. dollar extended its decline on Monday, having fallen by the most since July last week after the Federal Reserve dialled down its hawkish rhetoric and U.S. data showed signs of moderation.

The dollar index eased 0.2 percent to 104.85, its lowest level in 6–1/2 weeks, after falling 1.4 percent last week.