The yen rose strongly on Tuesday as a further drop in oil prices hit risk appetite.
Investors consolidated gains made following a strong U.S. jobs report that is expected to trigger an interest rate increase next year.
The U.S. dollar reached fresh multiyear highs on Friday after a stronger-than-forecast November U.S. jobs report.
The euro rebounded from a more than two-year low against the dollar on Thursday.
The U.S. dollar demonstrated broad-based strength on Wednesday, bolstered by more upbeat comments on the U.S. economy
The dollar rebounded on Tuesday, supported by a retreat in oil prices that has helped to lift it against commodity-linked currencies.
The dollar fell on Monday against the yen and euro as profit-taking emerged after it reached a seven-year high against the yen.
The dollar gained on Friday as concerns about continuing low oil prices added to deflation fears in the euro zone and Japan.
Recent evidence shows a divergence between the correlation of crude oil prices and the Canadian dollar, says Derek Halpenny, European head of global currency research at Bank of Tokyo-Mitsubishi UFJ Ltd.
The euro fell against the dollar after data showed Spanish consumer prices falling more than expected.
Disappointing U.S. data raised concern that the world's biggest economy is losing momentum in the final months of 2014.
The yen rose on Tuesday after Bank of Japan minutes showed the hurdle to further quantitative easing was high.
The euro rose against the dollar and yen on Monday due to encouraging German business data and remarks from a top European Central Bank official.
The euro fell sharply on Friday after European Central Bank chief Mario Draghi signaled the organization could launch further monetary easing.
The US dollar has recovered from session lows of 117.75 yen, while the euro fell slightly from around $1.255 to $1.245.
The greenback will rise steadily against each of its major counterparts in the next year as the Fed looks to raise rates, according to HSBC's David Bloom.
The US dollar was slightly weaker against the euro and the yen after the Federal Reserve released the minutes of last month's meeting.
The U.S. dollar weakened against the euro on Tuesday on a better than expected survey of German sentiment.
The yen recovered from seven-year lows against the dollar but remained under pressure after data showing Japan's economy slipping into recession.
The Japanese yen left many currency experts wrong-footed on Monday with a seemingly unstoppable depreciation coming to an abrupt halt.