Technicals

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The Dollar fell to three-week lows against the Euro on Friday, dented after Oil prices surged to a record high, data showed US consumer sentiment hit a 28-year low and Wall Street stocks extended their slide.

The battered stock market and worries over the credit market scaled back expectations for how soon the Federal Reserve could boost interest rates, even after the central bank said inflation risks have risen and kept interest rates on hold last week.

The Dollar would stay under pressure after US financial shares fell on Friday on worries about more credit losses. Lehman Brothers forecast Merrill Lynch would write down another $5.4bio in the 2nd quarter, while Moody's said it may cut Morgan Stanley's credit rating.

The European Central Bank holds a policy meeting on Thursday and is widely expected to raise rates to 4.25% fight rising prices. The key US jobs data is also due on Thursday.

EurUsd hit 1.5798 high on Friday before closing 0.18% up to 1.5790. UsdJpy was down 0.66% to 106.14, off three-week lows of 105.86 hit on Friday. UsdChf was 0.48% lower to 1.0183. GbpUsd rose 0.35% to 1.9946, hitting 1.9806 two-month high. EurJpy was 0.46% lower at 167.63 reversing from last week 169.57 record high.