The currency market continued to contend with record oil prices and their damaging effects on global growth with the yen taking the brunt of the selling pressure. While US benchmark crude oil prices have eased to levels under 60 usd, they remain close to all time highs and may well start climbing again. "Oil is getting even more attention in the forex market, with currencies seen as vulnerable to higher oil prices subject to weakness," said Mark Austin at HSBC, citing the weakness of the Japanese yen and the Korean won against the dollar. The dollar was also up on the euro and sterling after a quiet start to the week yesterday when the euro got a lift from the German Ifo survey which suggested that some growth may be returning. But with worries about the growth dampening impact of high oil prices dominating, the boost from the German survey soon passed. Today, euro zone data came in mostly weak to weigh on the euro at the margins. Italian business confidence fell to 84.2 in June -- the lowest since November 2001 while in Germany the GfK consumer confidence index also fell from 4.3 to 3.5 in June. In France, business confidence levels rose in June although expectations for production slumped to its lowest since late 2003. Later attention will fall on the US June consumer confidence data out at 1400 GMT where a rise to 104 is expected from 102.2 in June. That aside, the highlight of the week is expected to come on Thursday when the US Federal Open Market Committee makes its interest rate decision. While a quarter-point hike to take the benchmark rate to 3.25 pct is widely expected, there is also some worry that the rate setters may tone down their rhetoric.