The U.S. dollar extended its early slide against its most major rivals in early European deals on Monday, as treasury yields declined in the wake of weak U.S. economic data and the U.S. said it is working with China and other allies on a range of responses to North Korea's failed missile launch over the weekend.

The benchmark yield on 10-year treasuries fell 2.21 percent, while that of 2-year equivalent was down by 1.19 percent. Yields move inversely to bond prices.

Disappointing economic reports on retail sales and consumer prices released last week raised expectations of slower pace of rate-tightening cycle by the Federal Reserve.

During a visit to North Korean border, US Vice-President Mike Pence warned that "the era of strategic impatience is over" and military "should not mistake the resolve of the United States of America to stand with our allies.

Investors await New York Fed's empire manufacturing index and NAHB housing price index due later in the day for more clues about economy.

The currency has been trading in a negative territory in the Asian session.

The greenback dropped to a 4-day low of 1.2548 against the pound, compared to 1.2522 hit late New York Friday. The greenback is likely to find support around the 1.265 mark.

The greenback that finished Friday's trading at 1.0047 against the franc declined to a 4-day low of 1.0023. The next possible support for the greenback-franc pair is seen around the 0.99 region.

The greenback slipped to 1.0651 against the euro, its weakest since April 13. The greenback is seen finding support around the 1.075 area.

The greenback declined to 4-day lows of 1.3295 against the loonie and 0.7595 against the aussie, from Friday's closing values of 1.3325 and 0.7574, respectively. Continuation of the greenback's downtrend may see it challenging support around 1.31 against the loonie and 0.77 against the aussie.

The greenback fell to more than a 5-month low of 108.13 against the Japanese yen in the Asian session before recouping some of its losses in a short while. The pair was trading at 108.36, compared to last week's closing value of 108.57.

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