The US dollar looks set for a difficult week as a potential trade row brews with China.

With talk of punitive action through the World Trade Organisation (WTO), there are fears of a major spat that could stunt economic growth.

The dollar fell against other major foreign currencies during early trading this morning, with one dollar buying €0.74575 a short time ago.

China has reacted angrily to US claims that it has not done enough to combat pirated goods.

The world's fastest growing economy tightened intellectual property laws earlier this year and believes the US has not given adequate credit to the progress it has made.

While the markets hope for a swift resolution to the dispute, they will be looking ahead to the meeting of G7 finance chiefs slated for later this week.

The G7 summit will be of major interest to the foreign exchange markets, while the World Bank and IMF meeting next weekend will also be on the radar.

In the UK, while interest rates remained on hold last month most commentators expect another rise, perhaps even next month.

This week, the focus will be on the housing market - a key contributor to inflation - with the Royal Institute of Chartered Surveyors (Rics) due to publish its latest property price survey.

The pound was up slightly against the dollar this morning, but fell a little against the euro.

One pound bought €1.46930 during early trading.