The dollar rebounded from last week's record low against the euro and three-year trough on the yen in holiday-thinned trade this morning ahead of US data which should give more clues about the shape of the US recovery.
The greenback reclaimed two cents from the record low around $1.1975, set last week on fears of further trade friction between the United States and China and security concerns.
Liquidity was thin and expected to remain so for the rest of the week as Japan was off on a holiday today, Singapore will be closed on Tuesday and the United States has a Thanksgiving holiday on Thursday.
The focus is on a flurry of US data this week, including the second estimate of US third-quarter growth, November consumer confidence and Chicago Purchasing Managers' Index - all due in the front end of the week before the US holiday.
"We shouldn't read too much into the movements we are seeing today because liquidity is very thin. There is potential for sharp movements if figures, good or bad, surprise the market," said Neil Mellor, currency strategist at Bank of New York.
"Sentiment for the dollar is still clearly negative. There are concerns about how the U.S. current account deficit is going to be funded, geopolitical concerns and trade disputes are not helping either."
By 10.30 a.m. the dollar rose more than one per cent to $1.1782 from late Friday New York levels.
Against the yen it was trading at 108.98, after suspected yen-selling intervention by Japanese authorities last week helped it rebound more than a yen from the three-year low around 107.50.
European Central Bank President Jean-Claude Trichet said the G7 countries' statement at their Dubai meeting was aimed at encouraging some Asian nations to allow their currencies to rise in value against the US dollar and contained no message on the dollar against other major currencies.