Anna 
The U.S. dollar stabilized on Monday after experiencing a slump in the previous week due to weaker-than-expected nonfarm payrolls data, which prompted traders to adjust their expectations for potential Federal Reserve interest rate cuts this year.
At 04:31 ET (08:31 GMT), the U.S. Dollar Index, which measures the greenback against a basket of six major currencies, was trading 0.04% higher at 105.07.
Last week, the dollar index fell to its lowest level in over three weeks, driven by speculation that the Fed could opt to reduce rates from their highest levels in over two decades as early as September. Previously, the market had been anticipating an initial 25-basis point rate cut in November.
The soft payrolls report has placed upcoming speeches by several key Fed officials in the spotlight this week. On Monday, New York Fed President John Williams and Richmond Fed President Thomas Barkin are scheduled to speak, followed by Minneapolis Fed President Neel Kashkari on Tuesday. Chicago Fed President Austan Goolsbee and Fed Governor Michelle will also make appearances later in the week.
In currency markets, the euro was 0.1% higher against the dollar at $1.0769. The European Central Bank is widely expected to announce its own rate cut in June, although uncertainty remains regarding future monetary policy after the meeting.
Meanwhile, the British pound advanced 0.2% to $1.2573. Recent data indicating the robust state of the U.K.’s key services sector could give the Bank of England more flexibility to delay rate cuts.
Asian currencies, which had recently gained ground against the dollar, retreated amid expectations of sustained U.S. borrowing costs in the near term, keeping most regional currencies negative for the year.
The USD/JPY pair rose by 0.6% on Monday, with subdued trading volumes due to a market holiday in Japan. Conversely, the USD/CNY pair fell by 0.4%.
The USDSGD pair of the Singapore dollar advanced by 0.1%, while the USD/INR pair of the Indian rupee edged up by 0.1%.
In other developments, the AUD/USD pair climbed 0.3%, approaching two-month highs as traders positioned themselves ahead of the Reserve Bank of Australia meeting scheduled for Tuesday. While the RBA is expected to maintain interest rates unchanged, it may strike a more hawkish tone following stronger-than-anticipated inflation data for the first quarter.
