With the debt ceiling negotiations stalling. Dollar Falls Against Yen and Euro

The dollar continued to weaken against the yen and the euro today, after a sudden collapse in the US debt ceiling negotiations and following comments by Federal Reserve Chairman Jerome Powell in which he indicated that he would prefer to slow the pace of interest rate hikes.

The dollar fell 0.15 percent to 137.725 yen at the start of the week, after grabbing a six-day winning streak on Friday, pulling back from a six-month high.

The euro rose 0.14 percent to $1.08205, extending Friday's rally from a seven-week low.

Investors are now awaiting an important meeting between US President Joe Biden and Republican House Speaker Kevin McCarthy on Monday to discuss raising the debt ceiling.

Negotiations between the two sides abruptly stalled on Friday as Republicans withdrew from the meeting. Although the talks eventually resumed, neither side reported any progress, sending the dollar lower.

The dollar index, which measures the greenback's performance against six major currencies, was little changed to 103.07 points and hovered around last week's high of 103.63 points, last recorded on March 20.

Sterling, on the other hand, rose 0.14 percent to $1.2464, continuing its recovery from a three-week low hit last week.

The Australian dollar was little changed at $0.6652.

The New Zealander rose 0.16 percent to $0.62855.

The Chinese yuan fell to 7.0359 against the dollar in offshore trading, returning towards a six-month low reached on Friday at 7.0750.