The dollar traded lower in Monday morning trading after a recent rally that saw the U.S. currency gain ground against other major currencies. Investors are now assessing whether the dollar’s upward momentum can be sustained.

Factors Influencing the Dollar’s Value

• Global economic outlook
• Interest rate differentials
• Risk sentiment

Analysts suggest that the dollar’s future performance will depend heavily on upcoming economic data releases and any shifts in monetary policy from the Federal Reserve.

Impact on Markets

A weaker dollar could provide support to commodity prices, as well as boost earnings for U.S. companies with significant overseas operations. Conversely, a stronger dollar could weigh on these areas.

The currency market remains volatile, and traders are advised to exercise caution.