The dollar slipped on Monday as weak American manufacturing data encouraged the selling of the US currency.

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But dealers said they expected the currency to remain in well-established ranges absent of any major developments in Iraq.

The Institute for Supply Management said its February index slipped to 50.5 in February from 53.9 a month earlier, below expectations of a dip to 52.4.

Analysts say manufacturing is still growing, but it is a real wait-and-see situation.

There is a lot of geopolitical risk, not just in Iraq, but with oil prices up from the strike in Venezuela and North Korea not helping matters.

The single European currency rose to US$1.0890 at 2200 GMT from US$1.0804 late on Friday in New York.

The dollar also eased against the Japanese currency, but dealers were reluctant to sell the dollar aggressively on fears that Japan may intervene to weaken the yen.

The dollar stood at 117.855 yen from 118.11 on Friday.