Looming decisions on interest rates from the US Federal Reserve, the European Central Bank and the Bank of England contributed to investor unease and weighed on the dollar.

“The week has started off with a little bit of continuation of Friday’s dollar weakness. It’s all going to hinge on the central banks, and in general I would expect the euro to be the outperformer on that basis through the week,” said Daragh Maher, senior currency strategist, Calyon. “For the Fed the market is not expecting much change, but if there were any change it ... would be a somewhat dovish signal, whereas in Europe we need to get a hawkish shift to prepare for a June (ECB) hike, albeit one that is fully priced in.”

The Fed is seen holding benchmark short-term rates at 5.25 percent after its meeting on last Wednesday, but analysts say officials may mention signs of slower U.S. growth after recent data revealed anaemic job growth in April, which would weigh on the dollar.

The European Central Bank is expected to hold rates at 3.75 percent on Thursday but to signal a hike the following month, while the Bank of England is expected to raise rates to 5.5 percent the same day, a move that would put British interest rates above those in the United States.

The euro traded at $1.3603, less than a cent away from a lifetime high above $1.3680 hit in late April, while sterling edged higher to $1.9942.

The dollar was 0.2 per cent lower at 119.90 yen while the euro bought 162.80 yen.

The Australian dollar was the biggest gainer as strong consumer spending data boosted growth across the economy and kept upward pressure on inflation and interest rates.

Euro zone government bonds were mostly flat ahead of the interest rate decisions, with the June Bund future up five ticks at 113.73.

Benchmark London Brent crude jumped 56 cents a barrel to $65, climbing above six week lows as traders awaited data on US crude and gasoline supplies, while prices for gold and copper also dipped in Europe.