With no major U.S. data published on Monday and ahead of Wednesday's Federal Open Market Committee meeting the dollar held firm on Monday as policymakers are overwhelmingly expected to raise U.S. interest rates.
Sterling came back under pressure, down more than half a percent, following its bounce in the Asian session on Monday. GBP/USD fell 0.60 percent to 1.2636 and EUR/GBP rose to 0.8866.
Fed fund futures prices show traders have priced in about a 96 percent chance that the U.S. central bank raises overnight interest rates to between 1.00 and 1.25 percent on Wednesday.
The almost unanimous expectation of a Fed rate hike together with a more accommodative stance from the European Central Bank at their latest policy meeting and with the Bank of England expected to stay on the sidelines because of political uncertainty has buoyed the greenback as it battles a spate of recent negative data on the U.S. economy.
The dollar index, which tracks the greenback against six major currencies, was little changed at 97.248.
EUR/USD traded flat at 1.12.
