The dollar fell to a 15-month low against the yen on Wednesday as investors packed into the safe-haven Japanese yen.
The dollar tumbled to a four-month low on Tuesday as growing fears of a global slowdown pushed investors to safe-haven currencies.
The yen surged by half a percent against the dollar as worry over Europe's banks drove capital to the safety currecny.
China's foreign reserves fell for a third straight month in January, as the central bank dumped dollars to defend the yuan and prevent an increase in capital outflows.
The dollar rebounded on Friday after data showed a pickup in U.S. wages, suggesting rates hikes are more likely to happen in 2016.
China has struggled to shore up the yuan amid hefty capital outflows. Reserves data over the weekend may offer a glimpse of the challenge's severity.
The dollar was on the defensive after a collapse in hopes of a further rise in U.S. interest rates this year drove its biggest daily fall.
The yen rose on Wednesday as weaker stock markets in Europe spurred investors to buy safe haven assets.
Check out Hayman Capital's Kyle Bass and his bearish views on China's banking system and currency.
Kyle Bass said the day of reckoning for Chinese banks and a significant yuan depreciation could be just months away.
The U.S. dollar fell against the euro and yen on Tuesday after a drop in oil prices suggested U.S. inflation would stay low.
China's policymakers still have ammunition to counter the mainland's slowing economy, including supply-side reforms and subsidized housing, HSBC said.
CNBC's Seema Mody explains why hedge funds are betting against the Chinese currency.
The U.S. dollar fell against a basket of major currencies on the view that the Fed would not be able to hike interest rates as quickly as forecast.
China's leaders are set to target 6.5-7 percent economic growth this year, sources familiar with their thinking said, using a range for the first time.
The dollar rose sharply on Friday, hitting a six-week high versus the yen.
China's slowing economy and market rout may capture headlines, but the mainland's debt load is a bigger worry, said top China banking analyst Charlene Chu.
Charlene Chu, senior partner for China banks research at Autonomous Research Asia, says after under-injecting liquidity in Q3 and Q4, the Chinese central bank has had to be more aggressive in January.
Lack of institutional investors in China's equity market means state intervention is the only way to keep it stable, says David Gaud, senior portfolio manager at Edmond de Rothschild Asset Management.
The dollar hit a one-week low against the euro on Thursday after a plunge in U.S. durable goods orders.