The dollar remained on the backfoot in early trade as expectations of any G7 action in the coming weekend faded, analysts said.
The position of the US administration remains wedded to a strong US dollar and the view that the marketplace is the best determinant of currency values.
Mr Steve Pearson, chief currency strategist at HBOS, said the contents of the G7 statement will inevitably be the product of compromise.
"Europe may succeed in getting US backing for a further call for Asian FX appreciation, but the pre-meeting posturing from Japan strongly suggests that the Japanese will only find a reference to 'emerging nations' acceptable," he said.
Elsewhere, today's US data is unlikely to help lift the dollar, analysts said. The main piece of data is the ISM non-manufacturing index for January, which is expected to rise to 59.8 from 58.0 in December.
Cisco Systems shares dropped almost 5 per cent late yesterday after the company reported that second quarter net income fell due to an accounting rule change.
Meanwhile, sterling remained well-supported as the Bank of England's rate-setting monetary policy committee begins its two day meeting.
AFP