It was a dismal start to the greenback at the start of the week after the currency king slipped to a more than two-week low against its main rival.
In the Asian session, the dollar index, which measures the strength of the greenback, stabilized at around 108.23 against a group of major currencies.
The release of US inflation data today is now the main focus of investors where the annual consumer price index (CPI) is expected to decline to 8.1% in August from 8.5% recorded in July.
Meanwhile, the euro climbed higher to a more than three-week high against the US dollar on support from European Central Bank (ECB) policymakers' hawkish remarks on aggressive tightening.
The pound currency traded stronger even though the reading of the UK economic growth data recorded in July was less encouraging.
Investors are now looking forward to the release of the jobs report in the European session, which will be followed by inflation data on Wednesday and UK retail sales on Friday.
Taking a look at Asian currency developments, the Aussie and New Zealand dollars remained trading higher following a weaker US dollar with investors now awaiting the release of New Zealand's economic growth and Australian jobs data on Thursday.
In addition, the dollar loonie surged to a more than two-week high against the greenback amid expectations of more tightening by the Bank of Canada (BOC) to lower inflation.
In addition, the yen traded flat following a statement by a senior Japanese government official who urged the administration to take the necessary steps to counter the currency's sharp decline.
