Dollar dips against commodity currencies but holds gains versus Yen

The dollar also fell against the British pound and euro.The Australian dollar rose 0.3% to $0.7702, while the New Zealand dollar gained 0.18% to reach $0.7177.

The dollar index stood at 92.073 against six major currencies.

As per analysts, the dollar has improved because of positive economic data and progress in passing a $1.9 trillion stimulus package.

On Saturday, the US Senate passed President Joe Biden's $1.9tn worthy ‘The American Rescue Plan Act of 2021’ to speed up the United States' recovery from the economic and health effects of the COVID-19 pandemic.

Foreign exchange strategist, Yukio Ishizuki said, "We are seeing a significant divergence in the dollar."

He further added that commodity prices simply aren't coming down, so there's no way the dollar can rise against Australian and New Zealand dollar. However, the dollar will remain strong against the yen because yields are the main driver.

Moreover, the U.S. currency fell 0.38% against the Norwegian crown to 8.5283 and eased slightly to 1.2637 Canadian dollars.