The Euro falls back below $1.10 as the Dollar gains traction.

The EUR/USD pair retreated from its one-year high on Friday as traders raced to purchase additional dollars.

The EUR/USD exchange rate fell below $1.10 again on Friday and remained under duress during Monday's early trading session. Several economic reports indicating persistent inflationary pressures in the largest economy in the world have revived the dollar's popularity.

In this context, Federal Reserve officials rekindled concerns that additional rate hikes will be required to combat persistent price increases. In addition, Wall Street has responded adequately to the Fed's campaign of rate hikes, as evidenced by the robust earnings of major banks.

The Euro supporters had to regain their footing just as the European currency was gaining momentum. This coming week will be relatively low on economic news and reports. In March, euro zone inflation is anticipated to have stabilised at 6.9%.