The dollar fell back in late afternoon trade today as profit-taking set in after the US currency hit a seven-month high against the euro.
The single European currency edged up to $1.2576 in European trading from $1.2558 late on Friday in New York. Earlier in the day, the euro had reached a low point of $1.2535, last seen on October 20.
Amid a dearth of economic news, exchanges were subdued with most investors sidelined ahead of data due for release later in the week.
In terms of news, European politics took centre stage, with opinion polls suggesting that both France and the Netherlands could reject the proposed EU constitution in upcoming referendums.
And German Chancellor Gerhard Schroeder's Social Democrats party suffered a crushing defeat in their former regional stronghold of North Rhine-Westphalia over the weekend, prompting Schroeder to call early national elections.
But from tomorrow, economic news will move back to the fore. Among the releases are the German ZEW and Ifo sentiment surveys, while the minutes to the latest meeting of US rate-setters are to be published ahead of what are expected to be dollar-positive US data later in the week.
US first-quarter gross domestic product figures - due on Thursday - are likely to see an upward revision, while durable goods orders on Wednesday are expected to show a rise in April after three months of weakness.
