The dollar rose against the yen but eased from three-week highs against the euro on Monday as investors waited for key economic data this week to shed light on the health of the US recovery.
The dollar rose almost one percent against the euro on Friday after US gross domestic product and consumer confidence data eased concerns the world's biggest business engine might be stalling.
But dealers had little appetite to extend the dollar's rally ahead of Friday's US payrolls report and a raft of important releases beginning with US personal income and expenditure data at 1230 GMT. A British local holiday added to thin trading conditions.
"We expect (euro) range trading at around $1.20 with the market not making strong bets ahead of the payrolls this week," said Peter Wuyts, market analyst at KBC in Brussels.
The euro fell below $1.20 to its lowest in over three weeks in Asia but recovered in the European session to session highs around $1.2050.
The dollar was over a third of a percent higher at 110.00 yen as higher oil prices and weaker Tokyo stocks encouraged investors to take profits on the Japanese currency after last week's out-performance.
After a sharp pullback from record highs last week, US oil prices rose on Monday as Iraq's oil exports continued at more than 30 percent below normal after sabotage attacks on pipelines.
After two disappointing months for US job creation, August jobs figures could be crucial in determining whether the Federal Reserve raises interest rates in September for the third time since June.
Ahead of the jobs data, traders will be taking a look at Monday's US income and consumption data and Tuesday's consumer confidence index from the US Conference Board.
The index is expected to show US manufacturing expanded for a 15th straight month in August, even though the pace of growth is likely to have slowed.
"There is a very heavy US data calendar this week but the employment report will be the biggest release," said Phillippe Mayer, foreign exchange strategist at Societe Generale in Paris. "We'll probably stay in a $1.20 to $1.25 range until then."
Sterling continued its recent under-performance, falling to a three-month low below $1.7860 before regaining its footing above $1.79.
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