Dollar Falls Against Euro, Pound, Yen

The British pound was a little higher, climbing to $2.0462 from $2.0315. The dollar fell to 111.67 Japanese yen from 111.69 yen Friday.

The Fed meets Tuesday to discuss interest rates, with analysts expecting the U.S. central bank to trim its key rate, now at 4.5 percent, by a quarter of a percentage point. Some have speculated about the possibility of a half-point cut.

The expected cut would be the third amid mortgage problems in the U.S. that have tripped up borrowers and caused a credit crisis among banks -- fueling wider fears about the health of the U.S. economy.

Lower interest rates can jump-start an economy, but they can also weaken a currency as investors transfer funds to countries where they can earn higher returns.

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EXPERT ADVISOR