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Against a basket of currencies, the dollar was a fraction firmer at 93.339 and just above a two-year trough.
The dollar was a little steadier on the yen at 105.75 , well above the recent low of 104.17 but facing stiff resistance at 106.46.
Investors were wary of a fresh flare up in Sino-U.S. tensions with trade talks scheduled for Aug. 15 even as Washington imposed sanctions on senior Hong Kong and Chinese officials.
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Any breakdown in talks would tend to benefit the dollar, and the safe-haven Swiss franc, at the expense of the Japanese yen and commodity currencies such as the Australian dollar.
On the data front, the United States has consumer prices on Wednesday and retail sales on Friday, which is expected to show a solid bounce in spending albeit before the latest round of social restrictions took some steam out of the economy.
A raft of Chinese figures is due this week, which is forecast to show a continued recovery, while EU production data is also expected to please.
Data showed China's factory deflation eased in July, driven by a rise in global oil prices and as industrial activity climbed towards pre-coronavirus levels.
