The dollar fluctuated on Monday morning, strengthening modestly against the euro over continuing trepidation about Turkey and the risk of contagion it poses to Europe, before retracing those gains as risk-on trades boosted the euro.
Against the U.S. currency, the euro EURO strengthened to $1.144, half a basis point higher than its session trough. Against the Canadian dollar CADO, the greenback weakened less than a basis point to 1.307.
The dollar has gained in recent weeks, hitting a 2018 high last week, as investors seek safety, while emerging markets and the euro have suffered.
The dollar index was 0.6 basis point over the session, last at 96.133 .DXY.
The Turkish lira TRYO snapped a three-day rebound on Friday, sliding more than 5 percent against the dollar on fears the United States would impose further economic sanctions unless Turkey handed over detained American pastor Andrew Brunson.
On Monday, the lira fell 1.5 percent, pushed lower after S&P Global and Moody’s downgraded the country’s sovereign credit rating further into junk territory.