The dollar lost ground against major currencies on Monday as investors geared up for Federal Reserve Chairwoman Janet Yellen's first report on monetary policy.

The dollar index, which measures the US currency against six other major currencies slipped to 80.631 from 80.727 on Friday.

Investors are looking to Yellen's first testimony on monetary policy to Congress on Tuesday and Thursday. Markets will be keen to hear how recent economic data is being perceived by the central bank and for details on the Fed's decision last month to cut monthly bond purchases by a further $10bn to $65bn.

Investors are also hoping that Yellen, who took over from Ben Bernanke, will provide clues on the future direction of monetary policy.

Against the Japanese yen, the greenback eased to ¥102.20 from ¥102.26 the previous session while the euro changed hands at $1.3645 from $1.3637 on Friday.

The British pound weakened to $1.6407 from $1.6417 ahead of the Bank of England's quarterly inflation report due out on Wednesday.



CJ

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