The dollar index fell slightly on Monday, erasing early gains as prospects for Federal Reserve rate hikes eased following last Friday's weaker-than-expected US June payroll report. The dollar initially moved higher after the June ISM services index came in as expected at 54.0, but later gave up its advance. The euro rose modestly, supported by a stronger-than-expected Eurozone July Sentix investor confidence index and German factory orders, though gains were limited by weaker Eurozone retail sales. The yen weakened after Japanese authorities did not intervene in the forex market while US markets were closed for a holiday, despite the 10-year Japanese government bond yield hitting a 29-year high. Gold and silver prices rallied sharply, with gold closing up over 1% and silver up over 2%, buoyed by reduced Fed tightening expectations and a weaker dollar.