The euro held near record highs against the dollar today.
US rates are seen steady for the rest of the year with a small possibility of a cut - a factor which has kept the greenback on the back foot in recent weeks.
Earlier, the euro was steady at $1.3777, just below all-time highs of $1.3813 struck on Friday.
Investors are awaiting US inflation data and congressional testimony by Federal Reserve Chairman Ben Bernanke later this week for further direction on the US monetary policy outlook.
The dollar has also been weighed down by concerns that troubles in the US subprime mortgage market could spill over into slower economic growth and so prompt Fed rate cuts.
The dollar index traded at 80.582 today, within reach of last week's 2.5-year lows. The dollar was steady at 121.91 yen, while the euro was at 167.94 yen - about one yen below record peaks.