The dollar stayed on the defensive early on Monday, having extended its losses for a third week in the wake of dovish signals from the Federal Reserve.
The dollar index .DXY was little changed at 95.063, not far from a five-month trough of 94.578 set on Friday. It had trimmed some of its losses as investors lightened bearish positions ahead of the weekend.
Whether the market will resume selling remained to be seen with liquidity in Asia likely to be dampened by a holiday in Japan. Japanese markets reopen on Tuesday.
The greenback fetched 111.51 yen JPY=, still within reach of Friday's 17-month low of 110.67. The euro, which last week scaled a one-month peak of $1.1342, stood at $1.1271 EUR=.
The U.S. central bank's inflation and employment goals have essentially been met and it would be "prudent" to edge interest rates higher, St. Louis Fed President James Bullard said on Friday.
"Prudent policy suggests edging the policy rate and the balance sheet towards more normal levels," Bullard said in prepared remarks for a presentation to a monetary policy conference in Frankfurt, Germany.
Consumer Sentiment in U.S. Fell in March to a Five-Month Low, as lower-income Americans grew more concerned about prospects for the U.S. economy and higher gasoline prices.
Russia’s Central Bank has kept its key interest rate unchanged at the rate of 11%, the regulator said in a press release after the board of directors meeting Friday. The key rate has remained unchanged since last August. Russia’s annual inflation to decline to 6% in March 2017 and 4% at year-end.
Russia's central bank held interest rates steady on Friday, warning that inflation risks remained "high" and the oil price rise could be "unsustainable."
The central bank warned that "the current oil market still features a continued oversupply, on the backdrop of a slowdown in the Chinese economy, more supplies originating from Iran and tighter competition for market share."
"This is why the certain recovery in crude prices seen in the recent weeks may prove to be unsustainable. In recognition of this, the Bank of Russia assumed in its baseline scenario the average forecast oil price of $30 per barrel in 2016 (below the current price), with its gradual rise to $40 per barrel to 2018."
U.S. energy firms last week added one oil rig after 12 weeks of cuts, according to data by industry firm Baker Hughes. The addition, coming after oil rigs had fallen by two-thirds over the past year to 2009 lows, showed the fall in crude drilling stabilizing after a 50 percent price rally since February. [RIG/U]
U.S. crude CLc1 fell 40 cents, or 1.0 percent, to $39.04 a barrel by 0001 GMT. The market on Friday climbed to $41.20 a barrel, its highest since early December, before losing ground to settle down nearly 2percent at $39.44.
Over the past two months, prices have rallied after the Organization of the Petroleum Exporting Countries (OPEC) floated the idea of a production freeze at January's levels.
Brent crude's front-month contract LCOc1 was down 12 cents at $41.08. It hit a high of $42.54 a barrel in the last session.
European lenders have made important progress in talks with Greece on tax and pension reforms that are part of a package of measures Athens must adopt to win new loans and debt relief, a European Commission spokesperson said on Sunday.
Reference: Reuters, Bloomberg, Tass.ru
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