Investing.com -- The dollar eased back slightly from a 20-year high reached earlier this month on Monday, following disappointing U.S. economic data that may dampen expectations for aggressive Federal Reserve rate hikes.As of 02:38 AM EST (0638 GMT), the U.S. dollar index - which measures the greenback against six rival currencies - was down 0.13% at 103.820. The index is trading below a two-decade peak of 105.79 touched on June 15 after the Fed raised borrowing costs by 75 basis points in a bid to curb soaring inflation.Fears that these Fed actions could trigger a global economic downturn gave support to the greenback and the perceived relative safety of dollar-denominated assets.But on Friday, the final June reading of the closely-watched University of Michigan consumer sentiment index slumped to a record low, suggesting that Americans are becoming more pessimistic about the economic outlook amid a recent spike in prices. The gloomy mood may lead some investors to reevaluate their predictions for potential Fed rate rises.Major currencies in Europe increased against the dollar. GBP/USD rose by 0.12% to $1.2278, while EUR/USD firmed slightly by 0.05% to $1.0559 ahead of a key European Central Bank forum in Portugal this week.Elsewhere, China's yuan is holding near the flatline following an announcement by authorities in Shanghai that the city had emerged victorious over a recent COVID-19 outbreak.In Russia, the USD/RUB was also steady at 53.40 per dollar after a deadline for Moscow to repay foreign debt passed, potentially putting the country on a path toward default.