The dollar cut earlier losses against most major currencies after feeling the carry-over effects of a disappointing U.S. jobs report from Friday that throws into question the timing for a U.S. interest rate increase.
The dollar index was last up about 0.6 percent at 97.13, while the euro briefly hit a session low of $1.089 against the greenback. The euro zone common currency last traded at $1.0926, up 0.3 percent.
Expectations the U.S. Federal Reserve will raise interest rates sometime later this year has fueled the dollar's rally since mid-2014. Higher U.S. interest rates will put dollar-denominated assets at a yield advantage versus other currencies such as the euro and yen where interest rates are being kept low.
Friday's closely watched employment data showed U.S. non-farm payrolls rose by 126,000 in March, the smallest gain since December 2013 and well under the 245,000 economists had forecast. On the brighter side, average hourly earnings increased 0.3 percent.
European markets remained closed on Monday for the Easter holiday, limiting trading volumes.