NEW YORK: The dollar retreated from two-month highs on Monday as investors continued to evaluate whether a perceived hawkish tilt by the Federal Reserve last week will mean a pause in the dollar bear trend that has been in play since March 2020.

The dollar has surged since the US central bank on Wednesday said that policymakers are forecasting two rate hikes in 2023. That led investors to re-evaluate bets that the US central bank will let inflation run at higher levels for a longer time before hiking rates.

The greenback dropped on Monday but held above where it traded before the Fed’s statement on Wednesday.

The dollar index against a basket of currencies was last down 0.26% on the day at 92.013. The euro gained 0.27% to $1.1901 and the greenback gained 0.05% to 110.30 Japanese yen.

The British pound gained 0.69% to $1.3885.

In cryptocurrencies, bitcoin’s poor recent run continued with a 7.40% drop to $32,964, as China expanded restrictions on mining to the province of Sichuan.