The dollar fell on Monday to its lowest level in seven weeks against the euro and yen on fears that weak U.S. corporate earnings will push the economy closer to recession, requiring the Federal Reserve to slash interest rates.

Some of Wall Street's largest banks will be reporting their earnings this week, beginning with Citigroup on Tuesday, and currency dealers will be watching for indications of how much the credit crisis is damaging their bottom lines and increasing the risk of prolonged economic weakness.

Federal Reserve Chairman Ben Bernanke's comments last week that the central bank stood ready to take "substantive additional action" to maintain growth cemented expectations for a half-percentage point cut in the Fed's benchmark interest rate to 3.75 percent.

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