The dollar hit a 3 1/2-month low against a currency basket on Monday, with the U.S. currency coming under broad selling pressure as rising oil prices fuelled concerns about U.S. growth.

The dollar index .DXY, which tracks its value against the currencies of the biggest U.S. trade partners, fell more than half a percent on the day to 76.869, its weakest since early November.

Traders said a rise in the euro against the dollar due to Asian sovereign demand was also putting broad selling pressure on the U.S. currency. more

The Swiss franc hit a record high against the dollar on Thursday and the U.S. currency remained under broad pressure on fears that social unrest could spread in the oil-rich and politically volatile Middle East.

Traders said the dollar appeared to be losing its safe-haven lustre while the euro and the pound drew support from expectations that their interest rate advantage could rise further later this year.

"There may be a realization that if oil prices rise sharply, that would hit all the developed countries and in that sense it effects every major currency the same," said Tsutomu Soma, manager of foreign bonds at Okasan Securities.

"And if the impact from the Middle East crisis is roughly equal on each currency, you could argue that currencies with a yield advantage will benefit at the end of the day," Soma said. more