The dollar resumed its rally today against the euro after shrugging off a surprisingly weak capital flows report and rising against the yen on buying by Japanese investors.
European currency was down around 0.1 per cent at $1.2628 after it fell as far as $1.2582 yesterday - its lowest level since October 21st, according to electronic trading system EBS.
Dealers said that despite a hiccup yesterday, the dollar was still riding high on an unexpectedly large rise in new jobs and retail sales in the United States in April and a slimmer-than-expected trade deficit in March.
The US Labor Department will release its producer price index for April later today, while consumer price data is due on Wednesday.
The yen got a brief boost in early trade and hit a three-month high against sterling after data showed the Japanese economy grew at its fastest pace in a year in the latest quarter, more than double forecasts.
