The U.S. dollar slid slightly against the euro on Monday, wiping out minor gains made Friday after tough talk from Washington about reducing the deficit and better than expected financial news.
The 12-nation shared currency hit an all-time high of US$1.3470 earlier this month, and has remained in a relatively static position slightly below that on persistent concerns about the U.S. budget and trade deficits.
On Monday, it was trading as high as US$1.3386 and as low as US$1.3299.
The dollar rallied slightly on Friday after U.S. President George W. Bush vowed to take on the budget deficit by proposing to keep spending on non-defense and non-homeland security items virtually static in fiscal 2006.
At the same time, the U.S. Commerce Department announced that the country's current account deficit climbed to US$164.7 billion (euro123 billion) for the third quarter. Though the number was a record high, it was lower than the US$171 billion (euro127.6 billion) that analysts had forecast.
The pound was also higher Monday, trading as high as US$1.9507 while the dollar bought as little as 103.95 yen.