Speculators have reduced to net bullish dollar bets to their fewest in about year last week, Commodity Futures Trading Commission data showed late Friday. The greenback climbed to a six-week high against the yen at 113.45 yen. It was last up 0.9 percent at 113.40 yen.
The euro retreated from its highest in more than a year against the dollar set last week. It was down nearly 0.53 percent at $1.1363. The single currency brushed off a Reuters report that said some European Central Bank policy-makers were wary of removing the easing bias in its policy statement at its July 20 meeting.
Currency trading activity was muted ahead of the U.S. July Fourth holiday. U.S. financial markets will close early on Monday and will be shut on Tuesday. Ahead of Tuesday's meeting of Sweden's Riksbank, the Swedish crown was down 0.8 percent at 8.4920 crown per dollar.
Any shift in the wording of the Reserve Bank of Australia's statement, also early on Tuesday, may also support the Aussie , which was 0.5 percent below Friday's close at $0.7653.