Dollar turns positive; sterling slides on Brexit concerns

Dollar falls on fears of US protectionism

G20's protectionism shift hits stocks, dollar at 6-week low

Meanwhile, a policy statement from G20 financial leaders, heaped further pressure on the greenback, after the group of twenty dropped a pledge to keep global trade free and open from a policy statement at the weekend.

Investor scepticism over how much the U.S. Federal Reserve will be able to raise rates weighed on the dollar too, although with the exception of gold, the greenback's weakness failed to give a fillip to commodities, as is often the case.

European stocks closed modestly lower on the day, with a 3.7-percent fall in Deutsche Bank shares hurting banking stocks.

US stock index futures were lower on Monday as investors treaded carefully following the G20's decision to drop a pledge to avoid trade protectionism.

Worries that Trump's plan to cut taxes and boost the economy could take longer than previously expected also weighed on USA shares Monday. However, many US banks have recently expressed doubt over Trump's plans, specifically a reform on border taxes, which is not likely to be upheld in the US Congress in any meaningful way.

"It's just one more day delaying talking about policy", said Ian Winer, director of trading at Wedbush Securities in Los Angeles.

MSCI's broadest index of Asia-Pacific shares outside Japan rose nearly 0.4 percent to hit its highest level in more than two years on Monday.

MSCI's all-country world equity index was last down 0.16 points, or 0.04 percent, at 451.1.

Dow e-minis were down 8 points, or 0.04 percent, with 12,987 contracts changing hands. The S&P 500 ended down 4.78 points, or 0.20 percent, at 2,373.47.

Nasdaq 100 e-minis were down 1.5 points, or 0.03 percent, on volume of 15,415 contracts.

Europe's broad FTSEurofirst 300 index ended 0.23 percent lower at 1,488.36.

"Even though they hiked (rates), the perception was that they were mildly dovish. We are seeing continuing dollar sluggishness on the back of that", said Brad Bechtel, managing director at Jefferies in NY in reference to the dollar's earlier weakness.

In commodities, oil prices continued their downward trend as OPEC supplies remained steady despite touted cuts and rising USA drilling contributed to concerns about a supply glut.

The dollar inched up 0.1 percent against the yen to 112.85 yen, while the euro rose 0.2 percent to $1.0760.

The Federal Reserve last Wednesday, stuck to its previous forecast of two more rate hikes this year against expectations from market participants of three rate hikes.

The gap between two- and 10-year yields has shrunk, meaning the yield curve has flattened.

USA crude dropped 1 percent to $48.29 a barrel.

Brent crude settled down 14 cents, or 0.27 percent, at $51.62 a barrel.

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