The dollar was lower against the euro and yen early Monday, under continuing pressure from overnight news of stronger-than-expected first-quarter capital spending in Japan. In recent trades, the euro was up 0.5% at $1.2284 and the dollar down 0.7% at 106.93 yen. The dollar lost strength after Japan's Ministry of Finance released data showing that Japanese companies' first-quarter capital outlays rose for the eighth straight quarter. Capital expenditures rose 7.4% on year in the January-March period, faster than the previous quarter's 3.5% on-year rise, the Ministry of Finance said in a quarterly report. The data raised hopes that the economy is stronger than previously believed and that government will upwardly revise preliminary gross domestic product figures.