The dollar trimmed earlier gains to a one-month high against a basket of currencies today.
The euro was steady from late US trade at $1.4605 after dipping to a three-week low of $1.4573 on trading platform EBS. Just last month the euro struck a record high of $1.4968.
Investors are focused on European currencies as expectations mount for the Bank of England (BoE) to start cutting interest rates later in the day.
The euro was dragged to a three-week low against the dollar, with the ECB seen under pressure to strike a more balanced stance on policy as other major central banks cut rates to deal with the US slowdown and this year's credit crunch.
The yen was also weaker as Asian stock markets posted solid gains, making market players comfortable selling the low-yielding Japanese currency for higher-yielding currencies in the carry trade.
Japan's Nikkei average rose 1.6 per cent by late afternoon trade.
