The dollar slipped against major currencies on Tuesday as investors took the view that Dubai debt woes will likely be contained, reducing safety bids for the greenback, while the market awaited Australia's interest rate decision.

The yen hit its highest level in 14 years on the dollar on Friday, with investors unwinding risk trades as stocks fell on concerns about debt problems in Dubai.

The U.S. dollar fell against the euro Monday as easing concerns about Dubai's debt problems and stronger-than-expected U.S. regional business activity data eroded safe-haven demand for the greenback.

The euro zone's top economic officials pressed China on Sunday to let the yuan resume its gradual rise but said they were not counting on immediate results.

The dollar rebounded from a 14-year low against the yen on Friday, as fears of a possible Dubai debt default boosted safe-haven demand for the U.S. and Japanese currencies.

The yen hit its highest level in 14 years on the dollar on Friday, with investors unwinding risk trades as stocks fell on concerns about debt problems in Dubai.

The dollar fell to its lowest level in 14 years against the yen on Friday and the yen crosses also fell, with one trader saying investors were shunning risk trades on concern about debt problems in Dubai.The dollar fell as far as 85.84 yen on trading platform EBS, its lowest since 1995.

The dollar gained sharply in holiday-thinned trade on Thursday as renewed risk aversion prompted investors to shed riskier assets.

Half of the losses suffered by banks could still be hidden in their balance sheets, more so in Europe than in the US, IMF chief  Dominique Strauss-Kahn was quoted as saying.

The dollar slid to a fresh 15-month low against a basket of currencies Wednesday as upbeat data on weekly jobless claims, personal consumption, and new home sales bolstered the outlook for the U.S. economy.

The dollar fell to a six-week low against the yen Tuesday after a mixed bag of U.S. data kept worries about an economic recovery alive, enhancing the safe-haven appeal of the Japanese currency.

"The dollar over the next year or two will tend to see downward pressure because our recovery will be fragile and uneven," says one economist.

The dollar fell against a basket of currencies Monday after comments from a Federal Reserve official reinforced expectations U.S. interest rates would stay low for some time.

The dollar rose for a second straight session Friday as risk tolerance declined, with investors cutting exposure to assets and currencies perceived as higher risk ahead of a holiday-shortened week in the United States.

The dollar and yen rose Thursday as a pullback in risk appetite amid declines in equity and commodity markets revived safe-haven demand for the U.S. and Japanese currencies.