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The dollar moved lower versus the euro as global stocks rebounded Monday morning, bolstered by another round of strong economic data from China.
Chinese industrial output jumped 13.9 percent from the year-ago period in August, signaling renewed global demand for goods made there.
Financial stocks rallied on the announcement of Basel III banking capital rules. A panel of financial authorities from around the world, including Federal Reserve Chairman Ben S. Bernanke, agreed to have set banks set aside more capital to make the banking system more resilient.
Regulators gave banks a generous transition period to comply with the new capital requirement rules under Basel III.
The dollar dropped to a weekly low of 1.2833 versus the euro, down sharply from Friday's high near 1.2640.
Greece Prime Minister George Papandreou on Sunday ruled out new austerity measures, expressing confidence of achieving the goal as planned by the end of this year.
The buck continued to hover near August's 15-year low of Y83.33 versus the yen. The pair was stuck near Y84 this morning.
The buck rose to 1.5400 against the sterling, extending its run of choppy trading. The pair has been going virtually sideways around that level for the past three weeks.
Monday will be relatively light on the economic front, but activity picks up later in the week with a slew of U.S. data on tap. Traders will pay close attention to reports on retail sales, inflation, consumer sentiment, and manufacturing.
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