In the currency market, the dollar was slammed vs. the euro. Late Monday, the euro was trading at $1.3363 vs. $1.3158 on Thursday.

Analysts said the buck slid as the possible bankruptcy of General Motors (NYSE:GM) and the upcoming bank earnings, expected to be negative, weighed on U.S. stocks, the main driver for the greenback in the absence of hard data.

As Jeff Sakamoto, of Union Bank of California put it, “On a day like today, with really no economic news, people are paying a little more attention to U.S. stocks.”

That might seem a tad counter-intuitive, as Citigroup (NYSE:C), Morgan Stanley (NYSE:MS), JP Morgan (NYSE:JPM), and Goldman Sachs (NYSE:GS) were all up on the day.

Regarding GM, the Treasury Department has directed the company “to lay the groundwork for a bankruptcy filing by a June 1 deadline, despite GM’s public contention that it could still reorganize outside court,” according to the New York Times.

As MarketWatch.com wrote, “The preparations are aimed at ensuring that a GM bankruptcy filing is ready if the company is unable to reach agreement with bondholders to exchange roughly $28 billion in debt into equity in GM and to get needed concessions from the United Auto Workers union.”

Overall, “The market takes a break from policy this week and turns its focus to credit indicators and U.S. earnings,” wrote Jessica Hoversen, of MF Global (NYSE:MF). “U.S. earnings will remain paramount as the market continues to gauge the health of the economy.”

Source: Dollar Hammered By Euro

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