Why do dogs walk in circles when they first meet?

The circling is typically done mostly in the first few meetings between dogs. During this time they try to make an impression, snick each other, and exchange information such as physical strength, status, and the other dog's intentions. Body language plays an important role during this time, as the dogs attempt to establish a hierarchy. This can also escalate to a T stance, where the dogs stand at an angle forming the letter T.