By MarketWatch TOKYO (MarketWatch) -- The dollar was modestly higher in late Asian trading Monday, as investors digested the implications of the weekend's Group of 20 major economies meeting. Top G-20 leaders reached an agreement on common goals for deficit and debt reduction Sunday, but did not address currencies directly. See full story on G-20 meeting. "The initial reaction in the currency markets was mildly pro-risk with euro and cable rising at the start of the Asian open," said Boris Schlossberg, director of currency research at GFT. However, he said, by early European morning trade much of investor appetite for higher volatility currencies waned and the euro dropped, with this week's outlook to be largely determined by U.S. and European data. "If the news continues to surprise to the downside, safe haven flows will likely resume with U.S. dollar and yen rallying further as enthusiasm for the risk trade fades along with the hopes to contain deficit spending," he said in a note to clients. Against the Japanese yen, the dollar (CUR_USDYEN) edged up to ¥89.41 from ¥89.27 in late North American trading on Friday. The euro (CUR_EURUSD 1.2363, -0.0008, -0.0647%) slipped to $1.2367, compared to $1.2380 late Friday. The dollar index (DXY 85.39, +0.07, +0.08%) , which tracks the U.S. unit against six major counterparts, was at 85.411, compared to 85.342 late Friday. On Friday, the dollar fell against the euro and yen ahead of the G-8 and G-20 meetings. See Friday's Currencies report.

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