The US dollar managed to maintain its position with the dollar index starting to move higher at the opening of the European session.
Against most major currencies, the dollar index, which measures the strength of the greenback, traded steady at 101.53.
Even so, there is no clear factor moving the currency king as investors are still awaiting the publication of US inflation data on Wednesday.
Meanwhile, data published in the Asian session showed that China's imports contracted sharply in April compared to the previous year while exports grew more slowly.
Although it had little impact on currencies, the Aussie dollar started to retreat from a 4-week high and was also affected by Australian retail sales data which contracted in the first quarter.
The New Zealand dollar also eased slightly, but still maintained its gains at a 5-week high against the greenback.
In addition, the euro remained traded lower following the rally recorded by the US dollar since Monday's New York session.
European Central Bank (ECB) policymaker Martins Kazaks' statement that interest rates may not be on hold in July failed to give strength to the euro.
The pound continued to hold around one-year highs even though prices were seen to have weakened at the start of the European session.
In addition, the Canadian dollar remained strong at a 3-week high despite a slight decline against the US dollar.
Overall, currency markets remained sluggish amid the absence of key catalysts ahead of tomorrow's US inflation data.
