The dollar slipped to one-month lows against the euro and multi-year lows versus the pound and Australian dollar on Tuesday as markets continued to shrug off a Group of Seven warning against excess currency volatility.
Investors doubted the Group of Seven (G7) nations would intervene collectively in foreign exchanges to address concerns about "disorderly movements in exchange rates" they expressed at the weekend.
Low US interest rates and long running concerns about the US current account deficit remained good reasons to sell greenbacks for the Aussie and British pound, which offer much more attractive yields, while the euro gained almost by default.
A light day for US data also forced markets to look ahead to US Federal Reserve Chairman Alan Greenspan's Congressional Wednesday testimony for any possibility he could signal rate hikes looming closer.
"The G7 didn't come up with a big change in attitude. We are positioned for more dollar weakness to come - the fundamental picture is still there," said Peter Fontaine, currency strategist at KBC in Brussels.
"If Greenspan signals more of a turning point in the US rate cycle that could be positive for the dollar, but we don't expect that in the near term."
At 1245 GMT the dollar remained close to a one-month low of $1.2788 per euro, down more than half a percent on the day.
The dollar hit 6-1/2-year lows against the Australian dollar of US $0.7832, off nearly one percent on the day, and sterling climbed to a new 11-year high of $1.8734.
The dollar also slipped a quarter percent to 105.36 yen, close to last week's three-year low at 105.20, and hit a four-week low against the Swiss franc at 1.2261.
The losses took the dollar to its lowest in a month against a broad measure of currencies to 85.42.
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