Euro pressured by Greek debt worries

The euro eased 0.4% to US$1.0954, retreating from May 29's high of US$1.1006. Against the yen, it slipped to 136.21 from 136.49.

"There are now just four more sleeps until June 5, whereupon Greece will meet or miss its deadline for a 300 million euros payment to the IMF," said Ray Attrill, global co-head of FX strategy at National Australia Bank.

Without a deal, Greece risks default or bankruptcy in weeks. Sources close to the talks said Greece and its European creditors agreed on the need to reach a cash-for-reforms deal quickly.

With the euro on the backfoot, the dollar index crept up to 97.008, lifting off from May 29's low of 96.753. It was within reach of a five-week high of 97.775 set on May 27.

Investors have shrugged off data showing the US economy contracted in the first quarter, figures that were seen as backward looking and unlikely to derail the prospect of an interest rate hike later this year.

Against the yen, the greenback was little changed at 124.17, holding just under a 12-year peak of 124.46 scaled last week.

Analysts at RBC said the break of double-top resistance at 121.85 last week has resolved months of price consolidation to the topside.

Commodity currencies were also struggling against the dollar with the New Zealand dollar reaching a five-year low of US$0.7072 first thing this morning.

Its Australian peer wallowed at one-month lows near 76 US cents. A slew of domestic and Chinese data will determine the fate of the Aussie this week, starting with local building approvals and business inventories at 0130 GMT.