The dollar was mixed Monday morning in New York after the White House rejected the General Motors' and Chrysler's turnaround plans, raising fears that two of the auto industry's biggest players are headed for bankruptcy.

US stocks futures dropped like a stone Monday morning, and markets in Asia and Europe were a sea of red arrows, fueling increased risk aversion. This gave the dollar a bit of lift versus the euro and sterling, but the buck weakened against the yen as economic data signaled some light on the horizon for the Japanese economy.

While there are no major economic reports due to be released on Monday, there are several key reports that will be released over the course of the week, including the Labor Department's closely watched monthly employment report on Friday.

The dollar fell sharply against the yen Monday morning, once again failing to crack the elusive 100 mark. The dollar dropped to 96 yen, down from Friday's level above 98. Earlier in the month, the down hit a 4-month peak of 99.70.

Industrial output in Japan plummeted by 9.4 percent in February compared to the previous month, the Ministry of Economy, Trade and Industry said on Monday, falling for the fifth straight month and marking the third-largest fall on record.

However, Japanese companies' forecast for industrial output is up 2.9 percent in March and up 3.1 percent in April.

The dollar was able to grind out gains versus the euro Monday morning, rising to a week and a half high of 1.3160. Against the sterling, the dollar rose to 1.4110, having improved from a multi-week low of 1.4777 over the past few sessions.

Eurozone economic sentiment declined further in March, but more slowly than in the first two months of 2009, a monthly survey carried out by European Commission showed Monday.

The economic sentiment index declined to 64.6 in March from 65.3 in February. Economists were expecting a reading of 65.8. The indicator stood at its lowest levels since the series began in January 1985.

Meanwhile, the average price for a home in England and Wales plummeted by a record 10.3 percent on year in March, property industry group Hometrack said on Monday, following a 10.0 percent fall in February.

The average selling price was 156,100 pounds in March, marking the largest decline since the group started tracking home prices in 2000.

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