diff --git a/core/src/main/java/hudson/Util.java b/core/src/main/java/hudson/Util.java
index 240e93425a..d599a1a410 100644
--- a/core/src/main/java/hudson/Util.java
+++ b/core/src/main/java/hudson/Util.java
@@ -92,7 +92,7 @@ public class Util {
     /**
      * Pattern for capturing variables. Either $xyz or ${xyz}, while ignoring "$$"
       */
-    private static final Pattern VARIABLE = Pattern.compile("(?<!\\$)\\$([A-Za-z0-9_]+|\\{[A-Za-z0-9_]+\\})");
+    private static final Pattern VARIABLE = Pattern.compile("\\$([A-Za-z0-9_]+|\\{[A-Za-z0-9_]+\\}|\\$)");
 
     /**
      * Replaces the occurrence of '$key' by <tt>properties.get('key')</tt>.
@@ -118,14 +118,21 @@ public class Util {
             if(!m.find(idx))   return s;
 
             String key = m.group().substring(1);
-            if(key.charAt(0)=='{')  key = key.substring(1,key.length()-1);
 
-            String value = resolver.resolve(key);
+            // escape the dollar sign or get the key to resolve
+            String value;
+            if(key.charAt(0)=='$') {
+               value = "$";
+            } else {
+               if(key.charAt(0)=='{')  key = key.substring(1,key.length()-1);
+               value = resolver.resolve(key);
+            }
+
             if(value==null)
-                idx = m.start()+1; // skip this
+                idx = m.end(); // skip this
             else {
                 s = s.substring(0,m.start())+value+s.substring(m.end());
-                idx = m.start();
+                idx = m.start() + value.length();
             }
         }
     }
diff --git a/core/src/test/java/hudson/UtilTest.java b/core/src/test/java/hudson/UtilTest.java
index 521c8fbfb2..7fafac1cbd 100644
--- a/core/src/test/java/hudson/UtilTest.java
+++ b/core/src/test/java/hudson/UtilTest.java
@@ -14,6 +14,8 @@ public class UtilTest extends TestCase {
         m.put("A","a");
         m.put("AA","aa");
         m.put("B","B");
+        m.put("DOLLAR", "$");
+        m.put("ENCLOSED", "a${A}");
 
         // longest match
         assertEquals("aa",Util.replaceMacro("$AA",m));
@@ -24,10 +26,14 @@ public class UtilTest extends TestCase {
         assertEquals("aaB",Util.replaceMacro("${AA}B",m));
         assertEquals("${AAB}",Util.replaceMacro("${AAB}",m));
 
+        // $ escaping
+        assertEquals("asd$${AA}dd", Util.replaceMacro("asd$$$${AA}dd",m));
+
     	// test that more complex scenarios work
-	    assertEquals("/a/B/aa", Util.replaceMacro("/$A/$B/$AA",m));
+        assertEquals("/a/B/aa", Util.replaceMacro("/$A/$B/$AA",m));
         assertEquals("a-aa", Util.replaceMacro("$A-$AA",m));
         assertEquals("/a/foo/can/B/you-believe_aa~it?", Util.replaceMacro("/$A/foo/can/$B/you-believe_$AA~it?",m));
+        assertEquals("$$aa$Ba${A}$it", Util.replaceMacro("$$$DOLLAR${AA}$$B${ENCLOSED}$it",m));
     }