NEW YORK: The US dollar came under pressure on Monday as investors assessed the fallout from the Dubai debt crisis and digested lacklustre results from the US "Black Friday" holiday shopping kick-off.

The euro was trading at 1.5005 dollars at 2200 GMT against 1.4987 dollars late Friday in New York.

The dollar was meanwhile at 86.28 yen, down from 86.52 on Friday.

Investors remained on edge in the aftermath of Dubai's announcement last week that its state-controlled holding company Dubai World would need a six-month moratorium on its debt payments.

The disclosure rattled markets, raising fears for the health of the emirate's economy and calling attention to the heavily indebted positions of several other developed countries.

But an announcement late Sunday that the central bank in the United Arab Emirates, of which Dubai is a part, would provide additional liquidity to the country's banking sector went some way toward easing concern.

"The UAE central bank is sending mixed messages about whether they will or will not stand behind the Dubai debt but, at this writing, fear of significant fallout or contagion from the Dubai debt crisis has faded," said Michael Malpede at Easy Forex.

But he added that the consensus view "appears to be that the Dubai debt crisis is not another Lehman Brothers."

Still, the important dollar links of the emirates to the US dollar prompted renewed caution among traders.

"While the Saudi stance toward the dollar peg has been unwavering, the UAE's central banker has been all over the board," said March Chandler at Brown Brothers Harriman.

"In mid-November, Kuwait's basket approach was seen favourably as an alternative to the dollar-peg, but late in the month, desire to drop the dollar appeared to have cooled off significantly."

Camilla Sutton at Scotia Capital said currency markets are on edge.

"The problem has not been solved, but markets are far more confident today that contagion will be limited and that there will be some support for those at risk," she said.

"The market's reaction last week was significant and highlights just how fragile and nervous investors are."

Sutton said that after reports showing American shoppers curbing spending on Black Friday, the dollar has been "within its recent range and maintaining its downward bias."

In late New York trade, the dollar stood at 1.0050 Swiss francs from 1.0060 on Friday.

The pound was at 1.6441 dollars after 1.6500. - AFP/de