The dollar was kept below Friday peaks as currency traders seek a path between markets, volatile interest rate projections and central bankers want to keep rates low even as inflation surges.
The Federal Reserve's insistence on faith in the Federal Reserve's insistence that it will be patient with interest rate hikes on Wednesday is expected to show US consumer price growth at 5.8 percent year-on-year.
The dollar was slightly higher against the yen in early Asia trade and fell from a one-week low to 113.49 yen.
The dollar steadied at $1.1566 per euro after briefly touching a 15 month top of $1.15135 on the euro after strong US labor data on Friday.
The pound, which was walloped when the Bank of England surprised traders by holding rates steady last week, fell to a five-week low of $1.3425 on Friday before it reached $1.3487 on Monday.
The Bank of England's surprise caused a sharp reversal late last week in spite of a sharp rise in bets on imminent rate hikes in Britain and globally, while stocks have meandered higher through the maelstrom in bond markets.
Jason Wong, a strategist at the Bank of New Zealand in Wellington, said central banks have been downed a lot of markets, pumping up the equity market and pumping up the bond market.
He said that the market seems to be in a holding pattern but with risks building up, especially in China where a slowing economy brings global implications.
The Aussie and New Zealand dollars struggled to make much headway in early trade, with the Aussie coinned just below $74 and the New Zealand dollar around $7108.
The risks of AUDUSD are skewed to the downside this week, according to Kim Mundy, an analyst at the Commonwealth Bank of Australia, especially if US inflation data is strong or if Australian employment data on Thursday are particularly weak.
She said that a rise towards $0.7300 is possible.
In weekend data, Chinese exports were unexpectedly strong, but imports unexpectedly soft in another indicator of underwhelming demand, especially as China tightens movement restrictions to keep a lid on COVID-19.
The Communist Party begins a meeting on Monday that will give a resolution in praise of President Xi Jinping and leave the groundwork for a third term of his leadership.
Analysts are looking forward to China's producer and consumer price data due on Wednesday, with annual producer price growth surging to 12 percent, perhaps a harbinger of further price pressure to come through global supply chains.
The Chinese yuan was still weaker in early trade at 6.3951 per dollar. The US dollar index is nearly in the top half of a range that it has traded for a little more than a month.