NEW YORK -- With no fresh economic data available in the U.S. Monday morning, the dollar fell further against other major currencies in New York after last week's big moves.
The expectation that the Federal Reserve will act further to bring down interest rates to support the economy is weighing on the dollar. Lower rates tend to drag on currencies.
On Friday, the U.S. currency dove to a five-month low against the euro, hit a 2 1/2 year low against the Swiss franc and fell to its weakest point versus the yen since the Bank of Japan intervened in currency markets the prior week.
In morning trading in New York, the euro rose to $1.3485 from $1.3472 late Friday. In earlier trading in Europe, the euro reached a fresh five-month high of $1.3506. Worries about European government debt defaults are curbing the euro's rise, said UBS ( UBS - news - people ) analyst Geoffrey Yu.
The British pound rose to $1.5851 from $1.5815, while the dollar fell to 84.17 Japanese yen from 84.39 yen.
The yen had jumped to 15-year highs against the U.S. dollar earlier this month, which led the government to intervene in foreign exchange markets to weaken the yen for the first time since 2004. The Japanese currency has risen strongly this year, particularly this past summer, because of its appeal as a safe-haven currency.
A stronger yen hurts profits of Japan's major exporters, threatening to undermine the country's recovery from the recession. On Monday, the Japanese government said the country's export growth slowed for the sixth straight month in August because of the stronger yen and weaker demand for goods across the world.
In other trading Monday, the dollar edged up to 1.0270 Canadian dollars from 1.0268 Canadian dollars, and slid to 0.9823 Swiss francs from 0.9855 Swiss francs.
