The euro fell Monday against the U.S. dollar, despite record-high oil prices and the expectation of a rate hike by the European Central Bank later this week.
The 15-nation currency was at US$1.5742 in late European trading, down from the US$1.5775 it bought in late New York trading on Friday.
The British pound fell to US$1.9886, up from $1.9930 it bought in New York, while the dollar slipped slightly to purchase 106.15 Japanese yen from 106.26 on Friday.
The ECB is widely expected to raise its rates when its board convenes on Thursday amid high euro-zone inflation. The bank has left its key interest rate unchanged at 4 percent since June 2007. At the same time, analysts predict the Federal Reserve Board won't soon raise interest rates as the U.S. economy struggles with low growth. The Fed left its benchmark rate unchanged last week.
Higher interest rates, used to combat inflation, can strengthen a currency by giving investors higher returns on investments. Lower interest rates can weigh on a currency.
Meanwhile, oil moved above US$143 per barrel for the first time early Monday before pulling back slightly.
Analysts were expecting the dollar gains not to last, saying that the euro could again hit US$1.60 this week depending on the results of key economic news from Washington.
