The 13-nation euro bought $1.3799 in morning European trading, slightly below its level of $1.3808 in New York late Monday. That still left it close to its all-time high of $1.3852, reached in July.

The British pound also was marginally lower, slipping to $2.0274 from $2.0279. The dollar rose to 113.71 Japanese yen from 113.56 yen.

The dollar dropped sharply against all three currencies on Friday after the U.S. Labor Department reported that employers sliced payrolls by 4,000 in August, dashing economists' predictions that payrolls would grow by 110,000. The decline, the first in four years, continued to weigh on the dollar Monday.

The report has strengthened speculation that the Fed will cut interest rates at its Sept. 18 meeting. A cut from the current rate, 5.25 percent, would be the first reduction in four years.

Lower interest rates, used to jump-start the economy, can weaken a currency by giving investors lower returns on investments denominated in it.

Markets were looking ahead to a lecture by Bernanke in Berlin Tuesday afternoon for any pointers on the Fed's course.

"The markets are probably close to having factored in a quarter point rate cut at the Fed, but any suggestion that next week's ... meeting will mark the start of an extended run of softer monetary policy could readily see this ... dollar upside quickly eroded," said David Jones, chief market analyst at CMC Markets.