On Monday, the US dollar fell against other major currencies, as fresh weakness in the equity markets put pressure, although hopes for a Fed rate hike in September limit the decline.
The USD index, which tracks the US currency against a basket of six major rivals, fell 0.13% to 96.02, but remains well above the eight-month low at 92.52, reached last Monday.
The dollar strengthened after Fed Vice Chairman, Stanley Fischer, said that during September meeting of the bank, it will be too early to make a decision on whether to raise short-term interest rates from zero, the level that is kept from December 2008.
EUR/USD rose 0.19% and is traded at 1.1207.
The single currency strengthened after Monday data showed that Eurozone consumer price index rose 0.2% last month, even if it was expected an increase by 0.1%, after rising in July by 0.2%.
The inflation rate is below 1% for the past 21 months, while the target mark for the European Central Bank is the value just below 2%.
The Core CPI, excluding the cost of food, energy, alcohol and tobacco products in August rose 1.0%, in line with expectations and without changes from July.
The dollar fell against the yen; USD/JPY has weakened by 0.37%, to 121.26.
On Monday, China shares show a decline after the 10% rally in the previous two sessions amid renewed concerns over the situation of the second largest economy in the world, while shares in Hong Kong also dropped.
The euro and the yen strengthened as increased risk aversion boosted demand for low-yielding currencies for funding investments in risky assets.
This week, on Friday, investors will focus all the attention on the US employment report for August, which could clarify the likelihood of raising interest rates in the near future.
On Tuesday, the market will also keep track of the data in China, which is expected to show that economic growth continues to slow down.
Dollar is steady against the pound, GBP/USD pair being traded at 1.5407, and is moderately higher against the Swiss franc, USD/CHF adding 0.12%, to 0.9638.
The Australian and New Zealand dollars also fell; AUD/USD fell 0.42% to 0.7135, and NZD/USD pair lost 0.66%, to 0.6416.
Meanwhile, the USD/CAD pair rose 0.27%, to 1.3235.