"The dollar held steady but remained on the defensive after a sharp fall on Friday following news that American International Group (AIG.N), the world's biggest insurer, posted its largest ever quarterly loss and said it planned to raise $12.5 billion in fresh capital."

"The announcement, together with crude oil's record high above $126 a barrel, heightened concern about the health of the U.S. economy, and sent the Dow Jones industrial average (.DJI) down 0.9 percent."