- The dollar slipped lower against a basket of other major currencies on Monday as fresh concerns over the outlook for growth in China weighed on market sentiment.

The dollar fell to two-month lows against the yen, with USD/JPY down 0.21% to 101.30.

Market sentiment was hit after China’s financial regulators tightened rules on bank lending on Friday, sparking fears that limited credit could act as a drag on growth.

Meanwhile, data on Sunday showing that property prices in Beijing fell at the fastest rate in two years in April added to signs of a slowdown in the world''s second-largest economy.

The euro edged higher against the dollar, but gains looked likely to remain limited amid growing expectations for fresh monetary easing by the European Central Bank at its next meeting in June.

EUR/USD was up 0.11% to 1.3708, not far from the two-and-a-half month trough of 1.3647 reached last Thursday.

The euro has weakened broadly in the past two weeks, losing more than 1% against the dollar on the back of mounting expectations that the ECB will ease monetary policy at its upcoming June meeting to safeguard the recovery in the euro zone and stop inflation from falling too low.

Recent comments by ECB officials have indicated that the bank is open to easing and is prepared to act swiftly if necessary.

The latest drop in the euro came after data on Thursday showed that the euro zone economy grew at a slower than expected rate in the first three months of the year.

GBP/USD was almost unchanged at 1.6807, while USD/CHF dipped 0.08% to 0.8917.

The Australian dollar edged lower, with AUD/USD slipping 0.16% to 0.9349. Elsewhere, NZD/USD eased up 0.09% to 0.8643 while USD/CAD inched down 0.07% to 1.0855.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.07% to 80.07.

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