TOKYO (MarketWatch) -- The dollar took its cues from strong Asian equities markets Monday, as investors' rising risk appetite favored riskier, higher-yielding currencies, to the greenback's detriment. The euro rose to $1.3671 from $1.3626 in late North American trading on Friday. The dollar index (DXY 80.20, -0.23, -0.29%) , which measures the U.S. unit against a trade-weighted basket of six major currencies, fell to 80.201 from 80.430 late Friday. The dollar erased earlier gains against its Japanese counterpart, changing hands at 90.31 yen, down from 90.34 yen late Friday. Currency investors were also paying attention to weekend reports that Chinese central bank Gov. Zhou Xiaochuan said China will in due course move away from its currency-exchange policy, indicating Beijing doesn't plan to keep the yuan's de-facto peg to the U.S. dollar indefinitely. Read more on China yuan. "In our view, all the official comments in favor of a cautious foreign-exchange policy, or in favor of keeping the [Chinese yuan] basically stable, are aimed at managing market expectations and making clear that the [yuan] appreciation, when it starts, will be a gradual process," Sebastien Barbe, head of emerging-markets strategy at Credit Agricole, said in e-mailed comments. Barbe maintained his view that the yuan may resume its appreciation against the dollar in March or in the second quarter. The dollar fell against the euro on Friday after Greece's parliament approved a package of budget cuts and Greece's prime minister said it wouldn't need aid from its European neighbors.

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