The Dollar fell from a 12-week high on Monday as Federal Reserve Chair Jerome Powell left the door open for additional rate hikes.
The Dollar index – measuring the currency against six rivals – edged down 0.06% at 104.11 after reaching its highest since the beginning of June on Friday.
So far in August the index has risen 2% and is set to end a two-month losing streak.
On Friday at the annual Jackson Hole Economic Policy Symposium, Powell promised to tread carefully at upcoming meetings and noted progress on reducing price pressures as well as risks from the robust US economy.
As it stands, markets forecast an 80% chance of the Fed standing pat in September, according to the CME FedWatch tool.
“It remains unlikely we get a hike from the Fed in September. But November is shaping up to be a 'live' event, where data points have the potential to throw interest rate expectations around,” said Chris Weston, head of research at Pepperstone.
“When many other G10 central banks are already priced for an extended pause, the Fed potentially going again in November is supporting the Dollar,” Weston said.
Elsewhere, the Euro gained 0.14% on Monday to $1.0809 as China halved the stamp duty on stock trading.
Yet on Friday, the Euro was close to an 11-week low as president of the European Central Bank Christine Lagarde stressed the need for restrictive policy.
The market is evenly divided on the likelihood of another rate hike in the 3.75% rate next month, according to Refinitiv data.
In China, the Yuan held steady against the Dollar, bolstered by the Chinese central bank continuing to set stronger-than-forecast daily-mid-points. The spot Yuan was flat at 7.2932 per Dollar.
Whereas in Japan, the Yen moved down 0.02% to 146.48 per Dollar, falling short of the more than nine-month low of 146.64 reached on Friday.