The dollar slipped from a 14-month high against the euro reached earlier today as investors turned more cautious ahead of the US jobs report due on Friday.
As volume rose with the return of US traders to the market after a long holiday weekend, investors were starting to take some positions in advance of Friday's release of the influential US non-farm payrolls report.
By early afternoon, the euro was trading at $1.1915, up 0.1% from late Monday after having sunk as low as $1.1869 early in the session, its lowest since mid-May 2004.
The dollar slipped slightly after data showing May US factory for non-defense capital goods orders excluding aircraft fell 2.5%, the weakest reading since October 2004.
The dollar has been changing hands at its highest levels for several months against the euro, yen and sterling in recent days owing to a positive outlook for the US economy amid expectations of further US interest rate hikes.
