The euro rallied and riskier currencies like the Australian dollar strengthened on Monday as optimism over a breakthrough in U.S.-China trade war talks encouraged investors.
The euro ticked 0.3 percent higher to $1.1328, while the dollar index, which measures the U.S. unit against a basket of rivals, slipped 0.2 percent to 96.687 in a quiet session with U.S. markets closed for a holiday on Monday.
The Australian dollar, considered a barometer of global risk sentiment, rose 0.2 percent to $0.7154.
Sterling gained 0.3 percent to $1.2918, up from last week's one-month lows as investors awaited the outcome of talks between Britain and the European Union, with London trying to convince Brussels to tweak its withdrawal agreement.
Emerging market currencies were mixed.