The dollar dipped from near a five-week high against the
euro as oil prices jumped above $126 a barrel, surrendering some of the gains
scored last week after data showed U.S. companies cutting fewer workers than
expected.
The Australian dollar has
taken a big hit as
investors have been caught off guard by a sharp shift in expectations towards
interest rate cuts, tumbling nearly 3 percent against the dollar and yen last
week for its biggest weekly drop since the Bear Stearns collapse in March. Traders
said the Aussie likely had more room to fall as market players come around to
the view that the Reserve Bank of Australia, which holds a policy
meeting on Tuesday, could start cutting interest rates before long.
This week's events will feature a raft of central bank
meetings including the Federal Reserve and RBA on Tuesday, as well as the Bank
of England and European Central Bank later in the week.