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LONDON—The U.S. dollar slipped on Monday as a pick-up in market sentiment drove stocks and riskier currencies higher.
The dollar index—which tracks the greenback against a basket of six major currencies—fell 0.4 percent to 104.410, reversing some of its gains from the previous week after the U.S. Federal Reserve and European Central Bank hiked rates.
A rebound in risk sentiment across markets pushed European stocks higher after a bruising selloff last week, while currencies including the euro and sterling retraced some of their losses from the previous two sessions.
The euro gained 0.4 percent to $1.06260, while sterling strengthened 0.7 percent to $1.22195. However, both remained lower than their levels before last week’s central bank moves....