The dollar held close to a three-week low against a basket of major currencies on Monday in advance of this week's Federal Reserve meeting, as investors bet interest rates would be kept at their record lows until at least December.
The greenback has retreated from 12-year highs set in March, as rate hike expectations have been pushed back on uneven domestic data and turbulent market conditions due to worries about China, the world's No. 2 economy.
Though some in the market still think the Fed could act this week, the view that faltering global growth could push a move to the end of the year or even into 2016 is gathering steam.
"Of course China is important, but the Fed has to worry about the U.S. economy," said Ron Simpson, director of currency research at Action Economics in Tampa, Florida.