Dollar rally falters

The U.S. dollar fell on Monday against European and Asian currencies, and analysts say this might signal the end of a month-long rally in the dollar.

The dollar fell against the euro, sterling, the Swiss franc, and the yen, as well as against the Canadian dollar.

Data showed that by April 5, net short positions on the dollar were as low as they had been since February 8, when an early-year rally in the dollar fell flat.

This seemed to imply that the recent rally was driven by liquidation of short-dollar positions.

Most analysts said that U.S. trade data due out Tuesday would not be likely to change the dollar’s position significantly.

Although major currencies were up against the dollar, however, they changed very little otherwise.

Sterling was flat in relation to the euro and a bit lower against the yen. The yen was in turn just a bit higher in relation to the euro.

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