The dollar headed towards last week's four-week high on the euro and gained on the yen today amid optimism that US jobs data later this week may show sturdier improvement.
Dollar bulls have taken heart about the US labour market after the jobs component of a February US manufacturing index released on Monday gave its highest reading since 1987.
Later today, a US job cuts report from outplacement firm Challenger, Gray & Christmas will garner market attention, with investors looking for additional signals of improvement in the labour market - so far the weak link in US recovery.
By 11.13 a.m. the euro had slipped 0.4 per cent on the day to $1.2395, not far above Friday's four-week low of $1.2370.
The dollar had gained 0.6 per cent on the yen to 109.65 yen, not far below a 109.83 three-month high set last week. It was also 0.7 per cent higher on the Swiss franc and 0.5 per cent stronger on the day against sterling.
Federal Reserve chairman, Mr Alan Greenspan, talks about the current account at 5.30 p.m., and his comments will be closely watched for any clues to the timing of higher interest rates.