U.S. dollar drops after sharp rally

The U.S. dollar fell on Monday after a sharp rally following Donald Trumps'victory in the country's presidential election.

The dollar index, which tracks the greenback against six major peers, had been rallied over 4 percent since Trump was elected earlier this month, as investors expected that a Trump administration will implement economic stimulus policies that boost inflation and interest-rate hikes.

The index slipped on Friday after hitting a 14-year-high of 102.05 on Thursday. It further retreated to 101.320 in late trading on Monday.

Analysts said that the decline in the dollar was simply due to investors'profit-taking on recent gains and that the greenback was still on track for its strongest two-month increase since early 2015.

In late New York trading, the euro fell to 1.0598 dollars from 1.0599 dollars, and the British pound dipped to 1.2421 dollars from 1.2456 dollars. The Australian dollar rose to 0.7479 dollars from 0.7434 dollars.

The dollar bought 112.22 Japanese yen, lower than 112.92 yen in the previous session. The dollar inched down to 1.0139 Swiss francs from 1.0141 Swiss francs, and it fell to 1.3420 Canadian dollars from 1.3526 Canadian dollars. Enditem