During today's European trading, the dollar rose modestly amid concerns about inflation ahead of this week's Federal Reserve meeting.

Traders have become wary of rising inflationary pressures amid massive fiscal stimulus and pent-up consumer demand, as the vaccination campaign leads to the end of the quarantine.

U.S. producer prices posted their biggest annual gain in more than two years, according to data released Friday, before President Joe Biden's $1.9 trillion stimulus package to help fight COVID-19 takes effect.

The benchmark 10-year Treasury yield is at 1.618% on Monday, close to last Friday's high of 1.64%.

This will draw attention to the US Federal Reserve's two-day meeting ending on Wednesday. Expectations are low that the central bank will announce major monetary policy changes at its second meeting this year, but it is likely to raise its growth and inflation estimates for 2021, making its first quarterly economic forecasts for the year.

Both the Bank of Japan and the Bank of England are also set to hold monetary policy meetings at the end of the week.

The ICE index, which tracks the dollar's performance against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), rose 0.18%.