TOKYO  - The dollar was steady on Monday  despite a first-quarter contraction in the US economy as investors look for clues of a pickup that would justify an interest rate hike this year.

In Tokyo midday trading, the greenback bought 124.15 yen, slightly up from 124.12 yen in New York on Friday, but well off the 12-year high of 124.46 yen touched last week. Investors are now waiting for US jobs data for a clue about the state of the world's top economy, after revised data Friday showed it contracted 0.7 percent in the first three months of the year.

"Traders will look at this week's data with a little bit of caution, but the main thing is if the euro is losing ground, naturally you find the US dollar tends to benefit from that," Stan Shamu, a markets strategist IG Ltd.,told Bloomberg News. "Traders will probably stay long heading into payrolls data."

The euro weakened to $1.0950 and 135.95 yen, from $1.0991 and 136.42 yen in New York, as Greece's bailout talks drag on with the cash-strapped country facing a debt repayment deadline on June 5.

Time is running out for Greece to reach a deal with its international creditors to unlock 7.2. billion euros in bailout cash. There are fears that if it defaults the country could end up leaving the eurozone.

Athens' debt crisis dominated a three-day meeting of Group of Seven finance ministers in Germany, where Greece and its European partners came under pressure to end a crisis that has rattled the the global economy.

"There's a lot of uncertainty on that front and traders just aren't willing to take the risk," Shamu said, referring to a Greek bailout deal.

"Without any positive rhetoric suggesting they are closer to a deal, it makes it really hard for traders to find any conditions" that justify being long on the euro.