FRANKFURT, Germany (AP) -- The U.S. dollar opened the week slightly down against the euro Monday, eroding some of the gains made in recent days after a report showed that the world's central banks are increasingly stocking up on euros.
Europe's common currency was at US$1.3078 in afternoon trading, up slightly from US$1.3039 on Friday. The British pound was trading at US$1.8799, up compared with US$1.8784 at the end of last week.
The dollar staged a minor rally last week after some positive news about the U.S. economy, pushing the euro below the US$1.30 level. But it was not enough to calm persistent fears surrounding the ballooning U.S. trade and budget deficits.
Those worries have contributed to moves by two-thirds of the world's central banks to increase their euro reserves, according to a report released Monday by Central Banking Publications.
"This gives more fuel in the fire to give euro bulls more comfort," Paul Mackel, currency strategist at ABN Amro in London, told Dow Jones Newswires. "Reserve managers look at the long-term picture and are incredibly important."
Europe's 12-nation currency climbed to a record high of US$1.3667 at the end of December, from about US$1.20 in September.
The dollar edged up against the Japanese yen in Monday trading, reaching 102.79 up from 102.67 yen late Friday.