The dollar weakened against the Japanese yen and the euro on Monday, after the dollar climbing last week to a two-month high as traders mulled eventual future interest-rate hikes by the Federal Reserve. Today the U.S. had no economic reports due out but it was affect severely by the news that Abu Dhabi doled out $10 billion to help Dubai pay its debts which curbed safe-haven demand for the greenback.

The dollar bought 88.65 yen, down from 89.23 yen late Friday. The euro changed hands at $1.4653, up from $1.4623. The dollar index fell to 76.351 from 76.572 in late New York trading on Friday.

Still, news that Dubai received help to pay part of its billions in debt helped alleviate concerns over potential growth in sovereign debt defaults, contributing to weakness in the dollar.

Abu Dhabi’s last-minute intervention to help Dubai World “is boosting global equities, causing a broad sell-off in the U.S. dollar,” said Ashraf Laidi, chief market strategist at CMC Markets.

In recent days, the dollar has sometimes reacted positively to good news, indicating the currency is moving back toward its more traditional relationship of rallying when the economy seems strong enough to support higher interest rates, making the dollar more appealing compared to other nation’s currencies.

This week’s two-day Federal Open Market Committee ending on Wednesday may also have a negative effect on the dollar, as traders worried they’ll hear more dovish language from the central bank’s policy committee. Officials are expected to say they’ll keep benchmark interest rates at exceptionally low levels for an extended period.

Adding to evidence the dollar is growing more sensitive to economic growth and monetary policy, an uptick in consumer sentiment and retail sales on Friday bolstered expectations for a U.S. economic recovery, lifting the dollar to its highest level in two months.