Analysts have suggested in recent weeks that the greenback may have hit its peak when it touched a 14-year high earlier this month. Since then, the dollar has consolidated in most currency pairs and against a basket of six major currencies that track its value, hitting its lowest since Dec. 8 on Tuesday.
Trump's comments over the weekend likely exacerbated that in-progress trend, said Vassili Serebriakov, FX strategist at Credit Agricole.
The dollar surged at the end of 2016 on expectations that stimulus promised by Trump on the campaign trail would boost U.S. economic growth and feed demand for the dollar.
But Trump has continued to strike a harsh tone towards Beijing and his protectionist rhetoric is beginning to play a larger role in investors' thinking.
In an interview with the Wall Street Journal Trump said that U.S. companies "can't compete with (China) now because our currency is strong and it's killing us."
The dollar fell as low as 112.74 yen in early North American trading, with investors also citing Trump's tweets criticizing a Republican plan on border tax adjustments which had been expected to support the dollar.
Sterling rose nearly 3 percent against the dollar, touching its highest in nearly two weeks and on pace for its biggest gain in more than eight years.