The euro fell slightly against the dollar today, but traders and investors hesitated to take big positions in quiet pre-holiday trade.
The US currency failed to gain against the yen despite yet more poor readings on the Japanese economy, with the trade surplus shrinking in November and service sector activity declining in October for the first time in three months.
Early this morning the euro bought about $1.3360 compared with 1.3372 yesterday.
Currencies remained stuck in thin ranges as 2004 winds down and the market looks to see whether the dollar's ongoing woes extend into the New Year, although its focus stayed on the US budget and trade deficits.
The dollar staged a rare rally yesterday, jumping nearly 1 per cent against the British pound after a survey showed the drop in UK house prices accelerated in November to the fastest rate since the recession of the early 1990s.
While falling house prices could dampen consumer spending and deter the Bank of England from raising interest rates, traders said further selling in the pound was limited.
Just last week sterling hit a 12-year high versus the dollar. Earlier, sterling fetched around $1.9285 compared with yesterday's low of 1.9251 and late New York's 1.9274. The dollar was little changed at 104.40 yen.