The dollar extended its recent losses today by briefly hitting a new four-month low against the euro and a near-five month low versus sterling amid soft US data.
On Friday, a series of economic figures from the United States sent the dollar reeling when core inflation came out lower than expected and investment inflows to the United States appeared to be slowing down.
"The general trend is weakness in the dollar. Economic numbers have been weaker than the market had anticipated and the environment for rapid US rate hikes has been scaled down," said Mr Mark McFarland, currency strategist at UBS in London.
"Investment flows supporting the dollar have diminished in size and the potential for US growth is weaker."
The dollar fell to $1.2461 per euro, one tick lower than its Friday four month low of $1.2460. But by this morning it pulled up to $1.2440.
Against sterling the dollar fell to $1.8765, its weakest level since February 26th.
Japanese markets were closed for the Marine Day holiday but the yen was trading about 0.4 per cent up on the day against the dollar and the euro at 108.25 yen and 134.75 respectively.