The dollar stayed around record lows against the major currencies as cautious traders waited on US inflation reports.

A new 26-year low of 2.0403 was set against the pound in Monday afternoon trading.

Performance against the euro was similarly muted, dropping to 1.3787 from an opening level of 1.3772.

Last month, the dollar set a record low in trading against the euro when it fell to 1.3814 on July 13th.

"We're seeing ongoing weakness in the dollar due to concerns about the subprime market," Hideaki Inoue of Mitsubishi UFJ Trust and Banking told Reuters.

Later this week, federal reserve chairman Ben Bernanke is due to make his bi-annual address on monetary policy to Congress.

Market insiders have predicted that any negative statements regarding the condition of the subprime market could harm the dollar still further.