Dollar pares gains on profit-taking from recent rise

The greenback pared intra-day gains made in Asia and European morning and ended lower against majority of its peers due to profit-taking in holiday thinned trading as U.S. markets were closed for Martin Luther King Junior Day.  
  
Versus the Japanese yen, although dollar gained to 103.93 in New Zealand on comments from incoming U.S. Treasury Secretary Janet Yellen, price met renewed selling and fell to 103.70 in Asian morning on cross-selling in jpy before rebounding to 103.84 on usd's strength but later dropped to 103.64 in holiday-thinned North American trading.  
  
The WSJ reported Janet Yellen is expected to affirm the U.S.'s commitment to market-determined exchange rates when she testifies on Capitol Hill Tuesday, and she will make clear the U.S. doesn't seek a weaker dollar for competitive advantage, according to Biden transition officials familiar with her hearing preparation.     The remarks would represent a return to the U.S.'s hands-off approach to the dollar, which President Trump had deviated from by often publicly calling for a lower dollar.   
  
Although the single currency recovered to 1.2089 in New Zealand, price then dropped to 1.2066 at Asian open before rebounding to 1.2086 at European open. However, price then fell to a 6-week low of 1.2055 on usd's strength and later recovered to 1.2081 in North American session.  
  
The British pound met renewed selling at 1.3604 in New Zealand and fell to 1.3560 in Asia. Cable then dropped to session lows of 1.3521 in European morning on continued usd's strength before staging a strong rebound to 1.3588 in holiday-thinned North American session on active cross-buying in sterling.  
  
In other news, Reuters reported Britain's Brexit deal with the European Union is a good one for the commercial fishing industry, Prime Minister Boris Johnson's spokesman said on Monday when asked about fishermen's anger over difficulty exporting goods to Europe.   
  
Data to be released on Tuesday :  
  
New Zealand NZIER confidence, retail sales, GDT price index, Germany CPI, HICP, ZEW economic sentiment, ZEW current conditions, Swiss producer and import price index, Italy trade balance, EU current account, construction output, ZEW survey expectation, UK labour productivity, and Canada manufacturing sales, wholesale trade.