Dollar drops on bets U.S. tapering remains distant

The dollar fell on Monday amid speculation that Fed Chairman Jerome Powell will shun talk of tapering bond purchases at a policy meeting later this week. 

The euro climbed to a near two-month high against the dollar ahead of the release of German business sentiment data, which is expected to boost the economic outlook for the region. 

The dollar traded at 107.75 against the yen, near its weakest since March 4. The euro soared to $1.2110 on positive European services and manufacturing activity data.

The pound stood at $1.3897, adding to a 0.3% gain in the last session. The dollar was little changed at 0.9128 Swiss franc, near a two-month low. 

Elsewhere, traders focus on the Turkish lira as it tests an all-time low of 8.58 against the dollar amid worsening relations with the United States. The lira last stood at $8.4285.

In onshore trade, the yuan rose to 6.4866 per dollar, just below a six-week high. The Aussie and the kiwi surged to one-month highs but are likely to track moves in global commodity prices.