The dollar steadied above a two-and-a-half-month low as bets on the Federal Reserve cut interest rates, although investors are wary of selling strongly ahead of the G20 summit this month.
Markets take into account a 20 percent chance of a cut in interest rates in June, but take into account a 100 percent chance of a rate cut in July.
The dollar was steady at 96.80, near the low of 96.46 in late March, and the dollar has fallen 1 percent since the start of the month.
The pound fell as rivalry for the ruling Conservative Party began this week.
The euro rose to a five-month high against the pound to 89.32 pence before British employment data.