A gauge of the dollar declined for a second straight session as regional shares rallied on signs of easing US inflation. The yen edged lower.
The Bloomberg Dollar Spot Index fell 0.1% after Friday's 0.3% decline. Equity gauges from Australia to Shanghai climbed, extending the rally on Wall Street amid signs of moderating US inflation.
Traders will also be parsing Institute for Supply Management factory data later Monday for clues on the health of the US economy and the Federal Reserve's interest-rate outlook.
AUD/USD little changed at 0.6665, erasing an earlier loss of as much as 0.4%.
Improvement in risk appetite and strong Australian lending and building approvals data is aiding the Aussie, said Richard Grace, a strategist at InTouch Capital Markets.
USD/JPY advanced 0.2% to 144.54. It had risen to a seven-month high of 145.07 on Friday, that was near the level authorities intervened to prop up the currency last year for the first time since 1998.
U.S. Treasury Secretary Janet Yellen said she is in talks with the Japanese government on the pros and cons of foreign-exchange intervention to deal with the yen's depreciation, the Nikkei reported Saturday
GBP/USD down 0.1% to 1.2694 before manufacturing PMI data.
Source: Bloomberg
