NEW YORK: The dollar gained for a third straight session on Monday, as traders cut their bearish bets on the greenback to four-month lows amid the recent rise in US Treasury yields and grew cautious ahead of key global central bank meetings.

The Federal Reserve, Bank of England, and Bank of Japan are all set to meet this week and will likely set the tone as to where global rates are headed.

In mid-morning trading, the dollar index, which tracks the US currency against six major peers, was up 0.2% at 91.68. It hit a late November 2020 high of 92.51 last week.

The greenback rose 0.2% against the yen to 109.19, after earlier climbing to 109.36 yen, the highest since June 2020.

The euro weakened 0.3% to $1.1920 after rising last week for the first time in three weeks as latest data showed hedge funds slashed their net euro positions.

The Australian dollar - viewed widely as a liquid proxy for risk appetite - fell 0.4% to US$0.7725, extending Friday’s Loss.

Bitcoin, meanwhile, weakened 3.3% after surging to a record high of $61,781.83 over the weekend.