Forexpros – The U.S. dollar turned higher against its global counterparts on Monday, after a weekend meeting of the Group of 20 nations concluded without any progress on making more funds available to combat the financial crisis in the euro zone.

During European morning trade, the dollar edged higher against the euro, with EUR/USD slipping 0.18% to hit 1.3424.

The G-20 Group failed to reach an agreement on enlarging the size of the International Monetary Fund’s lending capacity and told European leaders that any outside assistance will be conditional upon a stronger euro zone debt firewall.

Germany has remained opposed to enlarging the size of the European Stability Mechanism, the permanent euro zone bailout fund that is to become active this year.

Market sentiment was also dented as the recent rally in oil prices fanned concerns that higher prices could create a drag on the global economic recovery.

However, the dollar’s gains looked set to remain limited ahead of the European Central Bank’s second liquidity boosting operation, set to take place on Wednesday, after the bank carried out a similar successful operation in December.

The greenback was also higher against the pound, with GBP/USD sliding 0.14% to hit 1.5847.

The greenback pulled back from a nine-month high against yen but pushed higher against the Swiss franc, with USD/JPY falling 0.82% to hit 80.51 and USD/CHF adding 0.13% to hit 0.8971.

The yen has come under pressure in recent weeks, following a surprise decision by the Bank of Japan to increase monetary easing earlier this month and after a fall in the country’s current account surplus.

Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.40% to hit 1.0035, AUD/USD down 0.25% to hit 1.0669 and NZD/USD losing 0.25% to hit 0.8339.

Earlier in the day, official data showed that New Zealand’s trade balance swung to a deficit of NZD199 million in January, from a surplus of NZD306 million the previous month.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.01% to hit 78.47.

Later in the day, Germany’s parliament was to hold an extraordinary session to vote on Greece’s second bailout, which was already approved by euro zone finance ministers last week, while the U.S. was to publish industry data on pending home sales.