On Friday, dollar rose against other major currencies, being supported by upbeat US employment data released on the same day, but its growth is expected to remain limited due to ongoing concerns about the collapse of markets in China.
USD/JPY added 0.11% to 117.57 after falling the day before to 116.68, its lowest level since August 24.
The yen weakened after China's central bank again raised the official exchange rate of the Yuan, but another collapse of Chinese stocks raised fears over the outlook for the second largest economy in the world.
Earlier on Monday, the PBOC has strengthened the official rate of the Yuan against the dollar. The increase was the second in a row after eight days of depreciation.
The decision eased concerns about the low exchange rate of the Yuan, but shares in China tumbled 5% after the release of national data on inflation, raising concern about the economy.
EUR/USD fell 0.20% to 1.0905 from 1.0801 low on Friday.
The US Labor Department said the US economy added in December 292 000 jobs, exceeding the expectations of growth by 200 000 jobs. In November, the increase amounted 252 000 jobs, the figure being revised from 211 000. US unemployment rate last month remained at the previous level of 5.0%, as expected.
The data raised expectations that the Federal Reserve will accelerate the pace of raising interest rates this year. Rising interest rates strengthens the US dollar, making it more attractive for investors looking for profit.
The dollar fell against the pound, GBP/USD rising 0.22% to 1.4556, and is stable against the Swiss franc, USD/CHF pair being at 0.9953.
The Australian and New Zealand dollars strengthened; AUD/USD gained 0.68% to 0.6999, and NZD/USD rose 0.23% to 0.6559.
Meanwhile, USD/CAD pair fell 0.38% to 1.4119, trading close to 12.5-year high of 1.4171 from last week.
The USD index, which tracks the US currency against a basket of six major rivals, rose 0.09% to 98.55.