The dollar gained slightly against the euro and yen on Monday after a better than expected report about home sales in the U.S. in 2008.

Sales of existing homes dropped 0.4 percent, less than previous forecasts to a yearly rate of 4.89 million, according to the National Association of Realtors. This was less than a downward revision of 4.91 million in December. Sales have been declining as potential homeowners wait to see if prices can keep falling.

The euro was at $1.4824 in late morning trading in New York from $1.4829 late Friday. The dollar rose to 108.05 yen from 107.28 yen. The pound was at $.1.9666 from $1.9677.

Last Friday, investors' outlook rose after a report that insurer Ambac could be a part of a bail out plan, sending U.S. stocks higher.

The dollar had been moving in the opposite direction toward the $1.4900 barrier.

Looking ahead, European Central Bank President Jean-Claude Trichet will speak in Germany later today.