The U.S. dollar fell against the euro Monday as last week's rally faded, lifting the European currency back to near US$1.30.
The euro fetched about US$1.2977 in midday European trading, spiking as high as US$1.2989, compared to US$1.2873 Friday. The British pound bought US$1.8868, compared with US$1.8685 late Friday in New York.
Strong Japanese trade figures helped send the yen higher against the dollar. The dollar bought 104.93 yen, down from 105.76 late Friday.
Last week's dollar rally took off after U.S. President George W. Bush presented a budget promising cuts in government spending and the U.S. trade deficit narrowed in December. But financial markets appear not to have shaken off broader worries about the U.S. trade and budget deficits.