Dollar in tight range ahead of U.S. services sector data

The Institute for Supply Management's index for non-manufacturing activity due later on Monday is expected to rise to 50.0 in June from 45.4 in the previous month, indicating activity stopped shrinking.

The greenback has been locked into narrow trading ranges recently as concerns about a resurgence in U.S. coronavirus infections offset growing optimism about the economy.

The euro will come into focus later in the trading day as Germany, the euro zone's largest economy, is scheduled to release industrial orders for May.

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Retail sales for all of the eurozone will also be released later on Monday. Both indicators are forecast to recover strongly from large declines caused by the spread of the coronavirus.

Elsewhere in currencies, the Australian dollar traded at $0.6944 on Monday in Asia following a 1.2% gain last week.

The Aussie is another market focus ahead of a Reserve Bank of Australia (RBA) policy meeting on Tuesday. Analysts expect that rates will stay at 0.25% amid signs that Australia's economic downturn will not be as dire as first feared.

Recent gains in prices of copper and other commodities that Australia exports, combined with a more positive tone for the RBA, are likely to support the Aussie, analysts say.

Across the Tasman Sea, the New Zealand dollar was quoted at US$ 0.6535.