The dollar rally eased on Monday with forex investors scaling back on bets that the U.S. Federal Reserve will launch a series of rapid rate hikes this year pushing U.S. yields lower.

The dollar index against a basket of its major rivals was down 0.15 percent at 92.402.

The index hit a 4-1/2-month high of 93.416 last Wednesday, as a rise in U.S. Treasury yields highlighted the wide interest rate gap between the United States and other countries.

Treasury yields slipped lower however after soft April U.S. consumer price data lowered the chances of the Fed lifting rates as many as four times in 2018 as had been expected.

U.S. policymakers raised rates in March, their first monetary tightening in 2018, and investors expect the Fed to hike as many as three more times through the rest of the year.

The 10-year Treasury yield stood at 2.960 percent after poking briefly above 3 percent towards the end of April.

EUR/USD traded 0.2 percent higher at 1.1964, having bounced back last week from 1.1823, its weakest since Dec. 22.

Still, the single currency was expected to face political headwinds, limiting its bounce against the U.S. currency.

USD/JPY was relatively flat at 109.35, its two attempts to break convincingly above the 110.00 threshold earlier this month having failed.