The Dollar jumped on Monday as top Treasury and Federal Reserve officials voiced concern about its recent slide, raising the chances that officials could step into the Foreign Exchange market to support the US currency. Dollar rose by more than 1% against Yen and 0.8% against the Euro after Treasury Secretary Henry Paulson declined to rule out intervention and New York Fed President Timothy Geithner said the central bank pays close attention to the Dollar. Dallas Fed President Richard Fisher said on Monday a weak Dollar can create a negative feedback loop that spurs inflation and saps growth.

The Dollar also got a boost from Lehman Brothers plans to raise $6 bio in fresh capital on the view that it could help stabilize the US financial sector. The Wall Street bank announced its plan after posting a $2.77 bio Q2 loss. A 6.3% rise in US pending home sales in April also added to Dollar optimism, while a small drop in Oil prices from Friday's record high of $139.12 per barrel also helped remove some of the concerns around the US economy.

UsdJpy was up 1.29% at 106.27, while EurUsd fell 0.84% to $1.5626, off a session high of 1.5844. EurJpy rose 0.45% to 166.30 after earlier hitting 167.15 highest since November. UsdChf rose 0.84% to 1.0272 after posting 1.0148 low.

European Central Bank President Jean-Claude Trichet said euro zone interest rates could rise in July to counter inflation, pushing the Euro closer to all-time high 1.6020. On Monday, Trichet reiterated that message at a conference in Paris, and analysts said ECB rate hikes could complicate efforts to intervene to stabilize the Dollar.