The dollar fell on Monday after posting its biggest weekly rise this year as investors took profit and grew cautious amid news that President Donald Trump's former campaign manager faces charges of conspiracy against the United States.
The caution was underscored by a spate of U.S. economic reports due to be released this week and ahead of a meeting of the Federal Reserve's policymakers Tuesday and Wednesday.
"We didn't see the dollar drop when the (Manafort) headline came out but I think it just provides more cautious undertones to whats going on right now," said Mizuho Corporate Bank currency strategist Sireen Harajli. "That does definitely play into it even if its not the full story."
The dollar enjoyed its best week of the year last week and the risk-off environment was prompting traders to sell the greenback and take those gains, Harajli said.
The day's risk aversion lifted the Japanese yen, often sought in times of geopolitical uncertainty, against the greenback. The dollar was last down 0.49 percent to 113.11 yen, near a one-week low.