On Monday, the dollar fell against the yen, retreating after Friday rally as shares in China collapsed once the country's central bank lowered the rate of the national currency, prompting fresh concerns about the situation of second-largest economy in the world.
USD/JPY fell 0.92% to 112.94 from a one-week at 114.00 on Friday.
On Monday, the National Bank of China lowered the RMB to three-week low, reducing the rate for the fifth consecutive session.
At the G20 meeting, which took place this weekend in Shanghai, PBOC head Zhou Xiaochuan tried to ease fears that China's economic strategy depends on the weakness of the Yuan, saying that there are no grounds for continuous devaluation.
Beijing's decision to loosen the Yuan's official exchange rate has raised concerns about the China-led global economic slowdown.
The euro is traded near a three-week low against the dollar; EUR/USD is at 1.0923.
Investors are focused on today's Eurozone data on inflation, on the eve of the forthcoming meeting of the European Central Bank next month to determine the monetary policy and on expectations of fresh stimulus by the central bank.
The single currency fell against the yen; EUR/JPY fell 1.13% to 122.99, getting to near three-year low at 122.44 reached last Wednesday.
Meanwhile, the pound is under pressure near seven-year lows; GBP/USD is at 1.3876 amid the uncertainty about the future of the UK in the European Union. A referendum on the issue is scheduled for June 23.
USD Index, which tracks the greenback against a trade-weighted basket of six major rivals, is trading below a three-week high last week of 98.08. The index has completed the last week with a gain of 1.63%, the fastest pace since November, after optimistic US economic reports reinforced speculation that the Fed may again raise interest rates this year.
Data on Friday showed that, despite the slowdown in the US economy, in the fourth quarter the pace of decline was not as sharp as originally anticipated.
Other reports, showing consumer spending and inflation in January, strengthened hopes for continued US economic recovery.