The dollar fell against most major currencies in light of cautious anticipation of the Federal Reserve's decision in light of recently released economic data.

Monetary policy officials will meet with the US Central Bank on Tuesday, and their meeting will continue until Wednesday, followed by the interest rate decision. The Bank of England will also hold its meeting on Thursday.

The European Central Bank announced last week that it would raise interest rates to the highest level ever as part of its efforts to curb inflationary pressures.

This comes amid fears of renewed inflationary pressures with oil prices rising to their highest levels in 10 months, as investors fear that high interest rates will continue for a longer period than previously expected.

However, investors are waiting for any signals from the policy statement or Chairman Jerome Powell on Wednesday, about the possible directions of the US central bank in the short term.

For her part, US Treasury Secretary Janet Yellen said that she does not see any signs that the US economy is slowing, but she warned that Congress's failure to pass legislation to keep the government running threatens to slow the momentum in the economy.

Yellen explained Monday during an interview with CNBC that the United States is closely monitoring oil prices, noting that US President Joe Biden wants to ensure that gasoline prices are affordable.

Yellen said: I don't see any signs that the economy is at risk of contraction. We have a good and strong labor market, where job opportunities are still high, and I think inflation is declining while consumer spending remains strong.

Yellen added that there is absolutely no reason for a government shutdown, which could cause a loss of momentum, which is a risk at this point.

Regarding labor unrest in the American auto industry, the Secretary of the Treasury said that it is too early to know the economic impact, as the matter depends on how long the strike continues, in conjunction with negotiating efforts with the labor union to end the strike and reach a settlement.

In terms of trading, the dollar index fell at 20:58 GMT by 0.2% to 105.1 points, and recorded the highest level at 105.3 points and the lowest level at 105.02 points.

Australian dollar

The Australian dollar settled against its US counterpart at 21:19 GMT on a positive note at 0.6437.

Canadian dollar

The Canadian dollar rose against its US counterpart at 21:19 GMT by 0.3% to 0.7413.