The dollar edged up on Monday after faltering in Asia on concerns about U.S. economic recovery, while the euro failed to make headway after a G20 summit failed to set markets alight.

The market showed little reaction to a Group of 20 leaders' summit where they agreed to take different paths to cutting budget deficits, a reflection of the uneven and fragile economic recovery in many countries.

It's mostly a compromise and nothing hugely material, said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.

The focus this week is of the recovery weakening, which is taking some upward momentum out of the dollar, most evident against the yen, as the euro remains hampered by its own issues.

At 3:34 a.m. ET, the euro was down 0.1 percent at $1.2353. Near-term resistance was seen at $1.2490, the high struck on June 21, with support forming around Friday's low of $1.2254.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up slightly at 85.441 .DXY, holding above last week's low of 85.09 which is seen as near-term support.

A fall below 85.09 would take the index to its weakest since mid-May. Support below that was seen near the 55-day moving average at 84.80.

The dollar was at 89.36 yen, not far from a five-week low of 89.21 hit on Friday after first quarter U.S. growth data was revised down. It lost 1.3 percent last week, the third straight week of declines.

A raft of U.S. economic data this week, culminating with non-farm payrolls figures on Friday, will offer plenty of evidence about the state of the world's largest economy.

The dollar got some support in Asia from expectations that Japanese importers' bids were sitting below 89.00 yen, but options triggers below 89.00 yen could take it lower, traders said.

The latest data from the Commodity Futures Trading Commission showed currency speculators trimmed bets on the greenback and went long on the yen in the week to June 22.


The U.S. currency hit an eight-week low against the Swiss franc at 1.0895 franc on trading platform EBS, and hovered near a five-week trough versus the yen.

Market players feel comfortable about picking up the Swiss franc as the Swiss National Bank (SNB) backed off a pledge to fight excessive appreciation of the franc earlier this month.

SNB board member Jean-Pierre Danthine was quoted as saying on Monday deflationary risks had largely disappeared in Switzerland and Swiss exports have proven to be robust despite a strong Swiss franc.

Sterling remained above $1.50, hovering near its highest levels seen since early May struck on Friday.

(Graphics by Scott Barber; additional reporting by Rika Otsuka in Tokyo, editing by Mike Peacock)