The dollar traded broadly higher against its major counterparts on Monday, as risk aversion intensified following the eurozone leaders' decision to delay emergency loans to Greece.

The greenback was up against the euro, with EUR/USD dropping 0.75 percent to hit 1.4205 during early European trading.

The finance ministers of the 17-naton eurozone, who met on Sunday in Luxembourg to discuss aid to the debt-hit Greece, postponed a decision on a new bailout for the country to early July. They also said that bailout will be subject to Greek parliament passing new austerity package by the end of June.

GBP/USD was down 0.34 percent to hit 1.6140, while USD/JPY was up 0.16 percent to hit 80.17.

On Monday, an official report showed that Japan posted its second-largest trade deficit on record in May, as exports continued to fall following a devastating earthquake and tsunami that hit the country in March.

However, the Swiss franc continued to enjoy the safe-haven status, with USD/CHF falling 0.16 percent to trade at 0.8468.

The dollar index, a measure of the performance of the greenback against a basket of six major currencies, traded up 0.57 percent.

While USD/CAD was up 0.49 percent to 0.9841, AUD/USD tumbled 1.11 percent to hit 1.0505. NZD/USD also fell 0.93 percent to hit 0.8052.

Traders expect Fed’s policy meeting later this week to lend support to the single currency in the near-term.