Dollar trades in narrow range, yen drops

The dollar steadied against its peers on Monday as investors awaited data showing a rebound in the U.S. services sector, a sign that the economy is recovering.

The dollar climbed to 107.74 on the yen. It slid to 0.9443 on the Swiss franc. 

The euro traded in a narrow range ahead of the release of data from Germany and the eurozone expected to show a recovery in retail sales and corporate activity. It gained 0.2% to $1.1270 and rose to 90.29 pence per pound.

The yen fell against major currencies as the bull sentiment in Asian shares prompted a risk-on mood. It dropped 0.4% to 121.41 against the euro. The safe haven also fell 0.5% on both the Aussie and the kiwi.

A surge in new coronavirus cases in the United States discouraged investors from taking big risks. However, traders continued to hope for recovery in major economies.

In onshore trade, the yuan climbed to $7.0570 as Chinese share prices rose to its highest in five years.

The sterling firmed at $1.2482. The Aussie gained 0.2% to $0.6956 and the kiwi stood at $0.6551.