The dollar continued to firm up versus other major currencies Monday morning in New York, paring some of its steep drop to yearly lows as traders bet the move was overdone. Risk appetite and demand for higher-yielding currencies has petered out over the past few days, even as stocks extended a winning streak on Friday. However, global cues are negative, with most major Asian markets closing in negative territory, while the major European averages are trading uniformly trading below the unchanged line. With little first-tier economic data on tap this week, traders will keep a close eye a the Fed's interest rate decision and a pair of key diplomat conferences. World leaders will meet in New York at the United Nations before moving onto the G20 in Pittsburgh Thursday. President Barack Obama announced over the weekend that he will be pushing for other nations to drive global growth, allowing the US consumer to spend more responsibly. There is not expected to be any talk of the dollar being replaced as the world's reserve currency. The Chinese floated the notion earlier this year, but have since backed off. Apart from these events, the existing and new home sales reports for August and the final reading of the University of Michigan's consumer sentiment survey are likely to draw the attention of traders. Looking at the currency charts, the dollar edged higher versus the euro, rising to 1.4662 from last week's yearly low of 1.4766. Versus the slumping sterling, the dollar rose to a 3-week high of 1.6133. The buck rebounded to 92.30 versus the yen, hitting its highest level since September 8. With the advance, the dollar improved from last week's 7-month low of 90.11. Against the loonie, the dollar climbed to C$1.0780, away from last week's yearly low of C$1.0590.

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