On Monday, the US dollar fell slightly against other major currencies, while activity is likely to remain low, as the world's major markets are closed today for the Christmas holidays.
On Monday, stock markets in the US and Europe will remain closed after the celebration of Christmas on Sunday.
Dollar fell against the yen by 0.25% to 117.05 as of 09:10 GMT, retreating from the 10.5-month high last week at 118.65.
Meanwhile, the euro was little changed against the US dollar and is trading at 1.0450, rebounding from a 13-year low last week at 1.0352, as investors take profits before the end of the year.
The British pound is stable at the level of 1.2280 against the dollar, compared with Friday's seven-week low at 1.2229 reached under pressure from uncertainty about the Brexit process.
The dollar was supported amid another interest rate rise in the US.
After the US elections in early November, the US currency jumped nearly 6%.
Earlier this month, the Fed raised interest rates for the first year and predicted three increases in 2017, in contrast to the central banks in Europe and Japan, where there is still a commitment to liberal monetary policy.
Raising rates usually strengthens the dollar, as the currency becomes more attractive to investors seeking income.
This week, trading activity is likely to be low because many traders have closed position.
The US is to publish reports on consumer confidence, pending transactions for the sale of housing, and the number of applications for unemployment benefits as traders await indications of the state of the US economy and hints on the future course of monetary policy.
A Reuters analyst expects a stronger dollar in 2017. He said that in the next year: “many global risks will continue, which will be reflected in increased volatility. In my opinion, the market will be influenced by several trends. The first of these is the increase in the US interest rates. The anticipated change in economic policy is already starting to generate increased inflationary expectations, which was confirmed by the recent decision of the Federal Reserve. In this context, the demand for the US dollar may increase. A higher dollar, in turn, may affect the value of the goods. The second trend is the decline in demand in Western Europe. Because of the negative rates, a deflationary scenario is quite possible.”