The dollar was lower against other world currencies this morning, amid talk that the US president is in talks to amend the country's currency policy.

This morning, at midnight GMT, the euro stood at 1.2752 USD in Sydney, but had gone up to 1.2804 USD four and a half hours later.

The dollar stood at 112.07 yen, which had fallen from the 112.49 it had stood at earlier.

American traders are continuing to discuss rumours that President George W Bush will replace John Snow, the treasury secretary, with Don Evans.

Tatsuro Karitani, Mizuho Corporate Bank forex dealer, told AFX UK: "This talk sent the dollar to just around the 112.00-yen level.

"The dollar-yen is likely to hover at the 111-113 yen level, while the euro-dollar should remain in the 1.27 - 1.29 usd range before the release of non-farm payrolls data."

There are a significant number of important announcements expected this week, including the ISM manufacturing index out on Thursday, and the May non-farm payrolls report expected the following day.

Mr Karitani said that the payrolls date could provide "new leads" which could "break the current trading ranges".