The euro remained near a two-year high against the dollar today on the view that the Federal Reserve may cut interest rates at least once this year.
The euro traded around $1.3595 little changed and floating near a two-year high of $1.3638 touched on Friday.
Investors brushed off comments from US Treasury Secretary Henry Paulson at the weekend that he still believed a strong dollar is in the US interest, a statement that European Central Bank President Jean-Claude Trichet said he had noted.
The US currency licked its wounds after tumbling last week, when it suffered its biggest weekly loss against a basket of major currencies this year on the view that the Fed may cut rates from 5.25 per cent, while rates in countries such as Britain, Australia and New Zealand are expected to climb.
Market participants anticipated data on US housing, as well as a preliminary reading of economic growth for the first quarter due this week, Japanese consumer price figures and an economic outlook report by the Bank of Japan.
The yen stayed near a record trough against the euro and a seven-week low versus the dollar as investors acknowledged that the Bank of Japan would be in no hurry to lift rates, particularly if consumer prices due on Friday remain in negative territory.
The dollar was little changed at 118.75 yen, while the euro was at 161.45 yen lingering near a record high of 162.43 yen hit last week.