The dollar clawed its way higher on Monday, recovering from almost four-month lows reached late last week on another surprisingly bad round of U.S. economic data.
Against the euro, it was up as much as half a percent, taking back some of the past month's hefty losses. Strategists said country-specific factors allied to rising U.S. bond yields had helped deepen a correction that started late in the European afternoon on Friday.
"We're happy because we sold euros on Friday and we think this move may continue," said Adam Myers, Head of European FX strategy at Credit Agricole in London.
"Short term, I think we go to $1.1350 today and, if the U.S. inflation numbers are better than expected at the end of the week, we could push on to as low as $1.1250."
Before Friday's U.S. data there are final euro zone numbers for April on Tuesday as investors seek clues to the monetary policy balance over the next year.