Asian session review: the US dollar fell slightly against most currencies

The dollar fell to a more than two-month low against its major currencies on Monday after a disappointing US employment report prompted investors to moderate expectations of higher interest rates, and now the focus is on inflation data this week.

Last month, the United States created just over a quarter of jobs and the unemployment rate unexpectedly rose, adding fuel to speculation runaway inflation.

The dollar index, which measures the greenback against six rivals, was at 90.20 after falling to 90.128 for the first time since February 26 at the start of the session.

The British pound posted the biggest gain among the most traded currencies, rising 0.65% to its highest level since February 25, despite the Scottish leader saying a second independence referendum was inevitable after her party's resounding election victory.

"The unexpected slow recovery in the US labor market reinforces the FOMC's patient approach to monetary policy, while the improving global economic outlook is putting medium-term pressure on the US dollar, " Commonwealth Bank of Australia strategist Kim Mundy said.

Even before the big payrolls miss, Fed Chair Jerome Powell had argued the US labor market is far from what it takes to start talking about reducing asset purchases and that the short-term spike in inflation will be temporary. Several Fed officials will have a chance to confirm that message this week, starting with Governor Lael Brainard on Tuesday. On Wednesday, the April consumer price index will be published.