The dollar index, which measures the greenback against six major peers, fell 0.12 percent at 95.8336.
The euro extended gains as traders eyed a key European Union (EU) summit.
"Optimism that European Union leaders will agree the details of a European recovery fund helped push the euro higher," analysts at UBS said in a note on Monday, adding "the risk of disappointment remains and that trade could be volatile."
The EU special summit which aims to decide on the next seven-year budget and a massive recovery fund dragged into the fourth day early Monday with disputes over core issues still unresolved.
In late New York trading, the euro rose to 1.1441 U.S. dollars from 1.1436 dollars in the previous session, and the British pound increased to 1.2662 dollars from 1.2565 U.S. dollars in the previous session. The Australian dollar increased to 0.7011 U.S. dollar from 0.7000 dollar.
The U.S. dollar bought 107.29 Japanese yen, higher than 106.95 Japanese yen of the previous session. The U.S. dollar was up to 0.9394 Swiss franc from 0.9382 Swiss franc, and it decreased to 1.3534 Canadian dollars from 1.3576 Canadian dollars.
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