The US dollar again traded positive in the European session, thus erasing the losses recorded at the start of today's trading.
Even so, the giant currency is still trading around 7-month lows against its main rival, seeing the dollar index rise at 102.40.
Overall, confidence in China's reopening and expectations of slower rate hikes by the Federal Reserve (Fed) still influence market sentiment.
Markets are now pricing in a 25 basis point hike at the February policy meeting following weak inflation data last week.
At the same time, investors are focusing on the Bank of Japan's (BOJ) policy meeting in the hope that it will make further changes in yield curve control (YCC) policy.
The yen pared some gains in the European session to trade at 128.60 against the greenback, retreating from an 8-month high it hit in the Asian session.
Meanwhile, the euro also declined slightly but still maintained its strength around an 8-month high against the US dollar.
The pound also retreated from its strongest level in a month as investors await Bank of England (BOE) Governor Andrew Bailey's statement on the Financial Stability Report in the New York session.
The Aussie and New Zealand dollars also eased slightly but each traded higher against the greenback.
