LONDON - The euro eased on Monday from its historic high against the dollar ahead of key inflation data, while the Turkish lira tumbled due to political turmoil in Ankara, dealers said.
The euro fell to 1.3599 dollars in early European trade, from 1.3650 dollars in New York late on Friday. The dollar stood at 119.67 yen, compared with 119.59 on Friday.
Dealers said the foreign exchange market was taking a breather after the euro soared to an all-time high of 1.3682 dollars on Friday following news that the US economy expanded at its slowest pace in four years in the first quarter.
Business was moderate, with markets in Japan closed for a public holiday Monday.
This week's release of other key US data including March core inflation figures later Monday, and April manufacturing will give further leads on the state of the world's biggest economy, dealers said.
If the US figures come in below expectations, confirming the US economy is slowing, then the dollar is set for further declines, dealers said.
"Data releases this week will provide a key test for the dollar, especially given the prospects for another batch of soft figures over coming days," said Calyon analyst Mitul Kotecha.
He added: "If there is a single release that could prompt euro/dollar to sustain a break higher then a disappointing jobs report expected on Friday could be the trigger for the move."
Meanwhile, the Turkish lira shed about 4.0 percent in value against both the euro and the dollar in Monday morning trade after a wild weekend that saw Turkey plunged into a political crisis following elections turmoil.
As calls for calm mounted, Foreign Minister Abdullah Gul, a former Islamist and the sole candidate in the race to become president, has ruled out withdrawing his bid, defying a threat by the army to intervene.
"Gul has said he will remain the AKP's presidential candidate," said Commerzbank analyst Gavin Friend.
"Hence, the lira is likely to remain under pressure (against the dollar) targeting 1.40 Turkish lira."
In Monday trading, the euro changed hands at 1.3599 dollars, against 1.3650 dollars late Friday, 162.67 yen (163.29), 0.6835 pounds (0.6833) and 1.6448 Swiss francs (1.6455).
The dollar stood at 119.67 yen (119.59) and 1.2094 Swiss francs (1.2055).
The pound was being traded at 1.9897 dollars (1.9974).
On the London Bullion Market, the price of gold firmed to 677.65 dollars per ounce, from 677.50 dollars late on Friday.

04/30/2007 10:54 GMT