The dollar edged higher in Europe early on Monday and traders expected it to continue gaining after a statement from a weekend meeting of Group of Seven (G7) officials failed to boost confidence in the yen.

The yen began its slide after the statement made no specific reference to the currency, saying only that it was vital for Japan, Asia and the world economy that Japan restore the health of its banking system, achieve domestic demand-led growth and open its markets. European markets fell, following declines on most Asian bourses, with London's FTSE 100 leading the retreat with a rapid slide of more than one per cent. "The outcome of the G7 meeting in Tokyo was disappointing, although realistically people did not expect much to happen until theJapan July 12 elections are out of the way," ANZ Investment Bank analyst Chris Portman said.

"Otherwise with the IMF team due to arrive in Moscow today, the focus will be on Russia," Portman added. An International Monetary Fund team was due to arrive on Monday to review economic reforms and the anti-crisis plan, which will be discussed on Tuesday at a joint government and parliament meeting. The IMF team, which unnerved Russian and international markets after it delayed a decision last week on handing out part of an existing loan, will also discuss possible extra aid for Russia.

Russian prime minister Sergei Kiriyenko said additional aid from the IMF -- Russian officials have said they could ask for up to $15 billion in the form of a Supplemental Reserve Facility -- would be a comfort blanket rather than a financial necessity.