The dollar hit a more than one-week high against a basket of other major currencies on Monday, helped by a pullback in the euro as investors took profits after the common currency's recent rally.
The dollar index, which measures the greenback against six rival currencies, was up 0.46 percent at 92.37.
The euro slipped 0.55 percent to $1.1962. It had hit a nearly four-month high of $1.2089 on Thursday.
"The euro got a little bit over its skies when it traded over $1.20," said Brad Bechtel, managing director FX at Jefferies in New York.
"It's a little bit of profit-taking and some healthy correction going on the euro's side, which is driving some of the dollar trades," he said.
The euro, which has rallied in recent weeks on expectations for a shift in European Central Bank monetary policy this year, suffered a little after a cooler-than-expected reading of the euro zone's December consumer price index on Friday.
Lackluster inflation pressure in Europe has been accompanied by a strengthening economic recovery across the continent and solid economic growth in China and the United States, fueling risk appetite.