NEW YORK (AFP) - The dollar gained sharply against the single European currency in trading after the weekend's meeting of Group of Seven finance ministers produced no surprises, traders said.
The single European currency fell to 1.2283 dollars at 2100 GMT Monday from 1.2411 dollars late Friday in New York.
The dollar also rose against the Japanese yen, climbing to 110.96 yen from 110.52 late Friday.
The US currency gained as traders digested the weekend G7 meeting and said it yielded few surprises.
"With the G7 statement being broadly unchanged compared to the wording set out in February's Boca Raton meeting, the dollar has staged a minor relief rally against the major currencies," said ABN Amro analyst Paul Mackel.
"With G7 event risk having now passed, we expect the market to re-direct its attention back towards the dollar's fundamentals."
The G7 statement reaffirmed that exchange rates should reflect fundamentals and reiterated that high oil prices pose a risk to the global economy.
"The dollar is clawing back ground following a (G7) meeting which offered nothing new," said Clyde Wardle, an analyst at HSBC in London.
Wall Street's higher close Monday and an upbeat US economic forecast also lent the dollar some support.
A National Association of Business Economists panel determined the US economy will grow solidly in 2005 no matter whether President George W. Bush or Democratic rival John Kerry is in the White House.
The panel forecast gross domestic product -- total economic output -- was expected to grow 3.7 percent in 2005 after a 4.3-percent expansion in 2004, despite rocketing oil prices.
However, an unexpected fall in US-made factory goods in August, on plunging demand for civilian aircraft, slightly tarnished the outlook.
Orders in August fell by a seasonally adjusted 0.1 percent, the Commerce Department said, defying widespread predictions by economists for a gain of 0.1 percent and partially reversing a 1.7-percent surge in July.
In late New York trade, the dollar was changing hands at 1.2645 Swiss francs against 1.2495 Friday.
The British pound was at 1.7839 dollars from 1.7991 late Friday.