NEW YORK: The dollar dipped on Monday but held above two-year lows against the euro before Federal Reserve Chairman Jerome Powell this week will give a highly anticipated speech about the US central bank's policy framework review. A sharp dollar selloff against the euro has paused, with the greenback getting a boost on Friday after data showed a recovery in US business conditions, while European data showed slowing improvement.

Powell's speech on Thursday will likely be the next major dollar driver, with investors watching to see if he signals that the US central bank will shift its inflation target to an average. This would allow inflation to rise higher than previously before the Fed raises rates, making up for decades of benign price increases.

The euro gained 0.35% against the dollar to $1.1836, after hitting a more-than-two-year high of $1.1965 on Friday before the data. The dollar index against a basket of major currencies fell 0.19% to 93.01. The Aussie was last up 0.42% at $0.7191. It reached $0.7275 on Wednesday, the highest since February 2019.