The US dollar was lower against other major currencies, hit by profit-taking following its bull-run last week, as the market is adjusting positions in the run-up to the release this week of more US economic indicators, dealers said. Of the economic indicators to be released this week, the market will focus on existing home sales, new home sales and durable goods orders to assess the near-term prospects for US interest rates, dealers said. "Given the emerging slowdown of housing investment in the US, US interest rates may not continue to rise at a pace that the market is hoping for," said Ryohei Muramatsu of Commerzbank. "Besides, the market had already priced-in interest rate differentials between the US and its major counterparts," he said. At 12.30 am (0330 GMT) here, the euro was quoted at 1.2185, up from 1.2166 usd three hours earlier in Sydney and 1.2166 usd in late New York trading Friday, while the dollar was at 110.17 yen, down from 110.45 yen in Sydney and 110.40 in New York. The firm performance of the equity market here, combined with expectations that the reform policy of Prime Minister Junichiro Koizumi will win public support at the forthcoming general election, weighed on the US dollar against the yen, dealers said. "There is a persistent view that the forthcoming election will root out anti-reformists and that reforms in Japan will progress," Muramatsu said. "More importantly, as long as the Japanese equity market is in a rising trend, the dollar is not likely to extend its gains much higher from current levels," Muramatsu said. The euro also firmed against the dollar, after having gone through a correction last week, dealers said. "Judging from emerging expectations for an upturn of the economy in the euro zone, especially in Germany, the euro is likely to strengthen against the dollar, rather than extending last week's correction," Muramatsu said