European session markets still saw the US dollar trading slowly around weekly lows as investors remained cautious ahead of the FOMC policy meeting.
Against most major currencies, the dollar index, which measures the strength of the greenback, traded slightly lower at 106.50.
The European market session was highlighted by the publication of Ifo survey data which showed a decline in business confidence in Germany in July to the lowest level in more than two years.
The decline comes as high energy prices and a lack of gas supply push Europe's largest economy to the brink of recession.
However, the weakness of the US dollar gave the euro the strength to hold on to its gains and shrug off the disappointing data reading.
In addition, pound trading also increased by trading stable at around 1.2000 against the US dollar amid expectations of a 50 basis point increase in interest rates by the Bank of England (BOE).
The yen also held on to gains from last week's fall in US 10-year bond yields, showing it trading steady at around 136.00 against the USD.
The Aussie and New Zealand dollars also traded positively as Australia and China started to show signs of getting better with both looking set to lift sanctions again.
