The euro regained a foothold in early deals in London, investors choosing to take some profit on two days of steep losses.» Read More
The dollar gained on Friday as concerns about continuing low oil prices added to deflation fears in the euro zone and Japan.
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.
Fanfare surrounding the Hong Kong-Shanghai stock connect allowing cross-trading between the two exchanges has faded, with investors staying away in droves.
The yen recovered from seven-year lows against the dollar but remained under pressure after data showing Japan's economy slipping into recession.
The dollar rallied on Friday, helped by unexpectedly strong U.S. retail sales data and a slide in the yen to seven-year lows.
Dollar moved towards a seven-year high against the yen, driven by speculation that the Japanese Prime Minister will call a snap election.
Soc Gen's Albert Edwards believes the Japanese currency will sink to 145 yen against the dollar by April, forcing devaluations across Asia.
Britain's pound slouched near recent 14-month lows against the dollar as investors pushed back rate-hike expectations to the fourth quarter of 2015.
The dollar climbed to a seven-year high against the yen as Prime Minister Abe is likely to delay a planned sales tax increase.
The dollar fell for a second straight session on Monday in quiet trading as investors took more profits on earlier steep gains.
84 percent of respondents polled by CNBC expect the greenback to march higher this week while Asian currencies continue to struggle. CNBC's Sri Jegarajah breaks down the results.
The dollar slipped on Friday after a solid but below-expectation October U.S. jobs report.