The dollar rose against major currencies on Monday, with Friday's losses following a mixed U.S. jobs report seen by some investors as excessive given the economy remains resilient and the labor market is still tight.
Federal Reserve official comments supporting additional interest rate hikes also underpinned the dollar.
The euro declined 0.2% against the dollar to $1.0995. It weakened after data on Monday showed German industrial production dropped more strongly than forecast in June, underlining the challenges faced by the manufacturing sector amid a downturn in Europe's largest economy.
Against the yen, the dollar gained 0.2% to 142.06 yen, while advancing 0.2% as well versus the Swiss franc to 0.8748 francs.
The dollar index was last little changed at 102.08. It fell to a one-week low last Friday in the wake of a U.S. non-farm payrolls report that came out weaker than expected.
"We're...looking at a correction (in the dollar) from the market's rather outsized reaction to Friday's non-farm payroll numbers," said Helen Given, FX trader, at Monex USA in Washington.
"While U.S. employment data did come in below expectation, it wasn't enough of a downside hit to justify Friday's U.S. dollar losses and the overall economic picture remains strong."
The broad strength of the U.S. economy was further underscored by Fed Governor Michele Bowman on Monday who said additional interest rate hikes will likely be needed in order to lower inflation to the U.S. central bank's 2% target.
Bowman, in remarks prepared for delivery to a "Fed Listens" event in Atlanta, said she backed the latest rate increase last month because inflation remains too elevated, and job growth and other indications of activity show the economy has continued expanding at a "moderate pace."
The Fed late last month raised its benchmark rate by a quarter percentage point to a range of 5.25% to 5.50%. Investors by and large believe that is likely the last increase of a campaign the Fed kicked off in March 2022.
Investors are starting to focus on inflation data from the United States and China due out this week.
U.S. inflation data is due on Thursday, where expectations are for core inflation of 4.7% on an annual basis in July.
Also expected this week is China's July inflation print on Wednesday, with traders on the lookout for further signs of deflation in the world's second-largest economy.
The Chinese yuan hovered near a two-week low, with its offshore counterpart last 0.1% lower at 7.196 per dollar.
Elsewhere, sterling rose 0.2% against the dollar to $1.277. Last Thursday, the Bank of England (BoE) raised interest rates by 25 basis points to a 15-year peak of 5.25%. It was the BoE's 14th back-to-back increase, but a step down in the pace of monetary tightening after rising by 50 bps in its previous meeting.