The dollar dipped slightly against a basket of six major currencies after hitting a ten-day high last week. The dollar index traded at 97.156 at 2:50 p.m. HK/SIN. Dollar/yen trended lower to trade at 110.14 yen, compared with levels around the 110.4 handle seen in the last session.
The upcoming Federal Open Market Committee (FOMC) meeting starting on Wednesday U.S. time should be supportive for the dollar, said Mizuho Bank Senior Economist Vishnu Varathan in a morning note.
"With expectations consolidating around (a) Fed rate hike and further guidance on balance sheet reduction, dollar shorts could be generally cautious, which could support the dollar into the FOMC meeting this week," Varathan said. Receding political tension stateside following the testimony of former FBI Director James Comey was likely to be dollar-supportive too, he added.
Pound sterling was firmer after falling as much as 2.5 percent last week when the U.K. election resulted in no party being able to claim a majority at parliament. Cable last traded at $1.2744.
In energy news, oil prices rose slightly after finishing last week down by around 4 percent. Brent crude rose 0.25 percent to trade at $48.27 a barrel and U.S. West Texas International crude added 0.22 percent to trade at $45.93.
Japan April core machinery orders, which tend to be volatile, fell 3.1 percent on month — greater than the 1.3 percent decline projected, Reuters said.
Stateside, stocks closed mixed in the last session, with tech stocks under pressure after hitting record highs at the beginning of the session. The Nasdaq tumbled 1.8 percent, or 113.85 points, to end at 6,207.92.