U.S. dollar rises against euro after Cyprus bailout deal

The U.S. dollar traded mixed against major currencies Monday. It advanced against the euro as concerns over the euro-zone banking sector remained after Cyprus and international lenders reached a bailout deal.

The euro initially rose versus the dollar after Eurogroup head Jeroen Dijsselboem announced early Monday that euro-zone finance ministers had approved a new bailout plan for Cyprus, relieving fears that the country may be forced to leave the single currency bloc.

However, the euro reversed the upward trend and slipped to a four-month low amid speculation that there may be more bailouts for bigger euro-zone countries in the future.

Meanwhile, the yen increased against the dollar as it stands as a safe-haven asset. The Bank of Japan's new Governor Haruhiko Kuroda reiterated his pledge to expand monetary easing policy and to achieve the 2-percent inflation goal in two years when he took the position last Thursday.

The yen is expected to stay weak as Kuroda may take real actions to further ease monetary policy after the Japanese central bank's policy meeting in early April.

In late New York trading, the euro fell to 1.2863 dollars from 1.2983 dollars in the previous session and the British pound dropped to 1.5181 dollars from 1.5220 dollars. The Australian dollar climbed to 1.0458 dollars from 1.0445 dollars.

The dollar bought 94.01 Japanese yen, compared with 94.44 in the previous session. It edged up to 0.9480 Swiss francs from 0. 9412 and went down to 1.0215 Canadian dollars from 1.0227.