LONDON (AFP) - The dollar rose against major rivals as the market turned its attention to the release of US retail sales data later in the week, analysts said.
The single European currency fell to 1.2307 dollars in early European trading from 1.2375 late on Monday in New York.
The dollar rose to 109.92 yen from 109.35 on Monday.
The price of gold fell by almost five dollars as the US currency strengthened.
A stronger greenback makes gold, which is priced in dollars on world markets, more attractive to buyers using other currencies.
Tuesday saw Japanese markets reopen after a long holiday weekend, while in the United States many traders were set to return to their desks after being absent Monday due to the Columbus Day holiday.
"The dollar has rebounded against most currencies in the foreign exchange market with the euro and the yen failing to break out of well-worn trading ranges after Fridays disappointing employment report in the US," Bank of Tokyo-Mitsubishi economist Derek Halpenny said.
With little in the way of immediate economic data from the United States, market focus was on the Friday's figures "that will confirm how strong (US) manufacturing and retail activity was in the final month of the third quarter", he added.
Elsewhere, the euro was being pressured by an unexpected sharp fall in a leading confidence index in Germany, analysts said.
The ZEW economic research institute's economic expectations index, based on a poll of 297 analysts and institutional investors, tumbled by 7.1 points to plus 31.3 points in October, after already falling in the preceding two months.
The latest decline came amid concerns about the runaway price of oil and indications that the global economic recovery is already running out of steam.
"The reason for the increased pessimism is the further rise in oil prices and expectations for a slowdown in global growth momentum," ZEW President Wolfgang Franz said.
The euro was changing hands at 1.2307 dollars from 1.2375 late on Monday in New York, 135.34 yen (135.28), 0.6896 pounds (0.6884) and 1.5492 Swiss francs (1.5487).
The dollar stood at 109.92 yen (109.35) and 1.2577 Swiss francs (1.2510).
The pound was at 1.7856 dollars (1.7974), 196.36 yen (196.42) and 2.2468 Swiss francs (2.2488).
On the London Bullion Market, the price of an ounce of gold stood at 417 dollars against 421.70 on Monday afternoon.