The dollar softened on Monday as other major currencies recovered some ground after 10-weeks of gains by the dollar index, its longest winning streak since the greenback's free float in 1973.

An exception was the Australian dollar, stung by concerns over global growth and suggestions at a meeting of G20 officials that China might hold off from further stimulus for the economy.

The Aussie fell 0.75 percent to a seven-month low of $0.8857AUD= and one-month volatility - bets on the scale of swings in the Aussie's value that traders use to hedge growing risk - jumped to a 6-month high of 8.95 AUDVOL= percent.

Australia's currency is often used as a liquid proxy for China plays, as the two countries are major trading partners.

"The Aussie is really just playing catch-up with dollar strength," said Douglas Borthwick, managing director at Chapdelaine Foreign Exchange in New York. "The (U.S.) dollar has seen a lot of strength, and that's being given back a little bit today."

The euro EUR=, which traded at nearly $1.40 in May, was up 0.06 percent against the dollar at $1.284 after touching a high of $1.2867.

The Japanese yen JPY= was up 0.06 percent against the dollar at 109.07 yen to the dollar, and the dollar index .DXY stood at 84.744. That a 0.01 percent gain for the day and near the basket of currencies' year high set last month.

Traders showed no initial response to European Central Bank President Mario Draghi's appearance in the European parliament, which followed a lukewarm take-up for the bank's latest scheme to push more money through the financial system.

If purchasing managers surveys due on Tuesday point to more weakness in the euro zone economy, it will fuel speculation that Draghi will be forced to embark on the sort of outright money-printing to which U.S. policymakers have just called a halt.

"The dollar is now on a pretty strong footing, although after last week's action we could be in for a bit of a lull," said Derek Halpenny, European Head of Global Market Research at Bank of Tokyo Mitsubishi-UFJ in London.

Other portfolio managers and analysts also see continued rises by the dollar against major currencies as Federal Reserve policymakers move closer to winding up ultra-loose monetary policies.

"For as long as the U.S. is talking about reducing its balance sheets and raising rates, while the other majors, Japan and the ECB, are talking about increasing their balance sheets ... you'll see dollar strength going forward," Borthwick said.

(Reporting By Michael Connor in New York; Additional reporting by Patrick Graham andAnirban Nag in London; Editing by Tom Brown)