The dollar advanced on Monday, rising against a basket of currencies for the third straight session, as traders focused on potential U.S. interest rate hikes and shook off worries about a China-led "currency war."
With little evidence the U.S. economy is rebounding after a very weak first quarter, the Federal Reserve is in no position to start raising interest rates for the first time since 2006, a top Fed official said on Monday.
With increasing expectations the U.S. Federal Reserve will hold off raising interest rates until September at the earliest helped push the S&P 500 to a record high close on Thursday and drove the dollar to near its lowest level since January.
Investors will rake in more than $1 trillion in 2015 as U.S. companies increase stock buybacks and boost dividends, Goldman Sachs Group Inc said, with benefits coming soon as many S&P 500 companies exit a blackout period for repurchases next week.
Treasuries fell as the U.S. prepared to sell $27 billion of two-year notes at the highest auction yield since 2011 with investors demanding a bigger premium with the Federal Reserve forecast to raise rates next year.