Markets continued to bet that the Federal Reserve had less tightening to do with the risk of a recession in the US economy. In this context, the dollar is wallow for nearly 3 weeks on bets for a less aggressive Fed.

The dollar held near a three-week low compared to its main peers on Monday. The dollar slipped 0.22% to 132.925 yen, returning to the six-week low of 132.505 reached on Friday. The dollar index, which measures the currency against six counterparts, fell slightly by 0.1% to 105.89, returning to Friday's low of 105.53, a level not seen since July 5.

The currency pair is extremely sensitive to changes in US Treasury returns over the long term, with the 10-year benchmark hovering around 2.67% after slipping At the lowest since the beginning of April at 2.618% at the end of last week. The euro, however, fell slightly by 0.07% to $1.0218, continuing to consolidate near the middle of its range over the past week and a half.

The pound was pretty much stable at $1,2186, after hitting its highest since June 28 at $1.2245 on Friday. The Australian dollar slipped 0.19% to $0.69775 on Monday, but after reaching a six-week high of $0.7032 during the previous session.