The dollar slipped within half a cent of parity level with the euro today, dogged by investor disillusionment with US asset markets.
Traders will be looking at how Wall Street fares later, after the latest US accounting scandal involving Xerox on Friday left investors worried what other accounting irregularities might come out of the woodwork.
"The dollar is very vulnerable to further crises of confidence in US asset markets," said Mr Steven Pearson, chief currency strategist at Halifax Bank of Scotland Treasury Services.
"People are almost treading water waiting for parity to happen." he added.
The dollar has been under broad-based selling pressure since early April as doubts over the strength of the US recovery and the reliability of US accounting standards have dimmed the once-unrivalled appeal of US assets.
Bank of France Governor Mr Jean-Claude Trichet today declined to comment on the euro's approach to parity with the dollar but said the strength of the single European currency was good.
Currency dealers are awaiting US manufacturing data later in the day to clarify the state of health of the world's largest economy.
The June ISM survey, formerly known as the NAPM, is due for release at 2 p.m. today.