Dollar slid across the board expect Japanese yen as CIT Group Inc. has clinched $3 billion of emergency financing from bondholders, keeping the struggling lender out of bankruptcy. This dampened U.S. dollar’s safe-haven appeal. In addition, strong U.S. corporate earnings prompted investors to plunge back into higher-yielding currencies and stocks. Atlanta Federal Reserve President Dennis Lockhard said on Monday that the U.S. central bank would continue to review its $300 billion longer-term Treasury securities purchase program and the already announced treasury purchases had positive impact for economy. Lockhard also stated that U.S. unemployment may get worse before it gets better. An index of the dollar against six major currencies hit a six-week low.

Euro traded narrowly after rising to 1.4483 in relatively thin Asian market as Japan market closed for a local holiday. German PPI in May came in at –0.1% compared to consensus forecast of 0.5%. Although the single currency briefly retreated after the data, buying interest on dips left the price up. Euro extended the recent upmove to as high as 1.4250 in New York morning session as investors were leaning away from safe-haven assets due to a rise in global stocks. However, the single currency failed to add to its gains following an upbeat report on U.S. leading indicators (0.7% versus economists’ expectations of 0.5%). DJI closed up 104.21 points or 1.19%, Nasdaq gained 22.68 points or 1.20%, and S&P added 10.75 points or 1.14%.

Earlier in the day, Righmove posted the average cost of a British home increased 0.6% this month, after falling 0.4% in June. The report showed demand in the U.K. housing market picked up, signaling the economic slump may be easing. The British pound hit this month high of 1.6560 against the greenback in New York afternoon. Cross buying on sterling versus euro and yen also helped with eur/gbp dropping from last Friday’s high of 0.8659 to as low as 0.8596 while gbp/jpy hit intra-day high of 156.44.

Surge in commodity prices (oil prices rose to $63.98/ barrel and gold was above $950/oz, hitting the highest level in more than a month) and the weak U.S. dollar sent commodity currencies, Aussie dollar, New Zealand dollar and Canadian dollar, to multi-week highs against the greenback, aud/usd rose to 0.8176, nzd/usd strengthened to 0.6580 while usd/cad hit 1.1019. Bank of Canada will announce rate decision on Tuesday and keeping the rates unchanged at 0.25% is widely expected.

Data to be released on Tuesday include Japan BoJ minutes, Australia RBA board minutes, Switzerland trade balance, U.K. PSNCR, Canada rate decision at 13:00GMT and Fed’s chairman Bernanke will speak at 14:00GMT.