The euro gained against the dollar to reach a new high in Asian trading, as the greenback came under pressure amid easing concerns over the nuclear crisis in Japan.
The EUR/USD pair rose to a new high of 1.4194 during the interbank trade in Asia, before settling around 1.4170.
In Japan, engineers were able to connect electric cable to three reactors at the damaged Fukushima nuclear plant, bringing the reactors under control.
Asian stocks gained for second straight day and oil prices climbed to near $103 per barrel as US-led military coalition launched air attacks on Libyan defense on Sunday.
The U.N. Security Council on last Thursday voted 10-0 to approve a no-fly zone over Libya and all necessary measures to protect civilians from attacks by forces led by Muammar Gaddafi.
Meanwhile, the greenback is expected to continue its weakness against the single currency as speculation over interest rate hike in April remains intact.
However, the European Central Bank (ECB) President Jean-Claude Trichet said on Friday that he had no message on the interest rates, Reuters reported.
I have no new message (on monetary policy). I have nothing to add,” said Trichet.
Also, the greenback edged lower against the Australian dollar on Monday, with the Aussie gaining 60 pips to reach a 4-day high of 1.0020. NZD/USD moved up 0.46 percent to 0.7340.
The Japanese yen remained steady against the dollar on Monday, after tumbling to the lowest level in two years against the US dollar on Friday, as G-7 nations intervened in the currency markets to weaken yen.
USD/JPY traded in the tight range of 30 pips below 81 in the Asian trading session.