The US dollar traded at steady lows against the majors on Monday morning, due in part to an absence of economic data.

Against the yen, the dollar hovered between 117.57 and 117.69 in Tokyo trading, while trading against the euro was a steady 1.3814.

The dollar is at a multi-month low against both currencies, with traders concerned about hedge fund losses and problems with the economy.

It has been speculated that the Federal Reserve will have to cut interest rates in the coming months in an effort to boost a flagging economy.

On Tuesday, the US Federal Open Market Committee is due to meet, while the Federal Reserve is also due to make a comment on the state of the US subprime lending market.

Subprime lending involves giving loans to borrowers who cannot access mainstream lending products, usually because of a poor credit history.

Since late last year, the US subprime mortgage sector has been the focus of concern as hundreds of thousands of borrowers have defaulted, while several major subprime lenders have gone under.