Cotton prices held steady after briefly reaching an over one-week high earlier in the session, buoyed by a weaker dollar and upbeat sentiment from the grains market seeping into the natural fiber.

* Cotton contracts for March (CTc1) were little changed at 67.57 cents per lb at 16:58 GMT after hitting a more than one-week high earlier in the session.

* The U.S. dollar index plunged 1.2%. A lower dollar makes greenback-priced cotton less expensive for overseas buyers.

* "The dollar is down sharply and cotton was able to rise up," said Rogers Varner, president of Varner Brokerage.

* "I think that 66 cents is a solid support, but for the moment the market does not have the incentive to push above 68 cents."

* In the grains market, Chicago corn futures hit a more than one-year high, with soybeans also rising on worries of a drought in Argentina and rains in Brazil.

* Cotton prices are expected to remain in a range of 65 cents to 69 cents due to weaker demand, said Jack Scoville, vice president at Price Futures Group.

* "We're threatening trade wars with about 3/4 of the world right now, so that's going to keep prices down."

* President Trump did not immediately impose tariffs on Monday as previously promised, but said he was thinking about imposing 25% duties on imports from Canada and Mexico on Feb. 1 over illegal immigrants and fentanyl crossing into the U.S.

* Adding to the upbeat sentiment, Wall Street's main indexes rose, with the blue-chip Dow at a more than one-month high, as investors assessed President Donald Trump's executive orders after taking office and awaited his first move on trade policy.