The euro and yen weakened on Monday as a warning from Japan's prime minister about excessively volatile currency markets and the biggest one-day gain for China's yuan in more than a decade helped settle financial nerves.
A stock market sell-off since the start of February has driven a wave of capital to seek the traditional safety of Japan, driving the yen 7 percent higher and prompting speculation Tokyo would intervene against the currency.
Japanese Prime Minister Shinzo Abe told parliament that "excessive currency volatility is undesirable" and said appropriate action would be taken in the exchange rate market as needed.
Abe also said he hoped the Group of 20 finance leaders would take appropriate measures to address global economic problems when they meet in Shanghai next week.
Chinese central bank chief Zhou Xiaochuan also played down the benefit of capital controls and said it was quite normal for currency reserves to fall as well as rise. That helped drive the biggest rise in onshore rates for the yuan since China dropped an official peg to the dollar in 2005.