The dollar started trade in Asia on the defensive, after a volatile few days in the wake of the Federal Reserve's dovish steer, which cast doubts on bullish positions for the greenback. The greenback stood at 120.01 yen, following Friday's fall from 121.205. The euro climbed to $1.0838, pulling further away from a 12-year trough of $1.0457 reached last week. With the U.S. dollar looking weaker, commodity currencies were better. The Australian dollar traded near 78 U.S. cents, off a six-year trough of $0.7561 reached on March 11.
European Central Bank President Mario Draghi will address a European Parliament committee, with Greece and the progress of the ECB's quantitative easing program sure to be high on the agenda. With officials in Brussels, Berlin and the ECB now openly acknowledging the risk that Greece could leave the euro zone, this meeting will be closely watched for signs of a breakthrough or hardening of positions.
The Canadian dollar rallied on Friday as a U.S. dollar selloff against major currencies and higher crude prices overcame the impact of weaker-than-forecast domestic retail sales, which had initially dragged on the currency. The Canadian dollar finished the session at C$1.2579 against the U.S. dollar, or 79.50 U.S. cents, roughly a cent and a half stronger than Thursday's Bank of Canada close of C$1.2726, or 78.58 U.S. cents. The loonie surged some 2% on Wednesday and then lost half of that gain the next day. The currency gained about 1.6% for the week.