The dollar has remained high against the euro but could be affected by a potential increase in interest rates made by the European Central Bank (ECB) later this week.

Expectations are that the ECB is likely to increase interest rates from 3.75 per cent to four per cent, whiles speculation that the US Federal Reserve will cut rates has been bolstered by strong employment reports.

In addition, the US currency is thought to have been supported by a forthcoming report due tomorrow which is expected to highlight an expansion in service industries.

Hideki Hayashi, a global strategist at Shinko Securities, told Reuters: "Given recent euro zone data, Trichet is likely to repeat ECB concerns about inflation, signalling more rate tightening to come."

"The euro is likely to recover against the dollar after Trichet's comments," he added.

The main banks of the UK, New Zealand and Australia are all set to announce on their countries' rates this week, with the market widely forecasting that all three will leave rates unchanged.