The dollar fell against a basket of currencies on Monday as big gains in oil prices rekindled demand for the euro and commodity-sensitive currencies, soothing concerns about the effects of weak commodity prices on the global economy.
A rally in industrial metal markets led by a 20 percent surge in iron ore prices also stoked bids for riskier currencies and reduced the allure of the greenback.
The increase in oil and metal prices followed assurances from China this weekend that its economy is not heading for a hard landing.
"The market was overly bearish on the Chinese economy. We are seeing a repricing of that," said Charles St-Arnaud, currency strategist at Nomura Securities International in New York.