The US dollar pared some of its losses after seeing disappointing data in the US manufacturing and services sectors.
Heading into the European session, the currency king was trading not far from near 20-year highs with the dollar index steady at 108.68 against a basket of major currencies.
The dismal reading in US economic activity has raised uncertainty about policy-setting by the Federal Reserve (Fed) which may need to start slowing aggressive tightening.
Even so, it is still too early to speculate about it since more economic data needs to be seen and emphasized by the Fed, for example the US gross domestic product (GDP) data that will be released on Thursday.
Still, investors may be able to get new clues from Chairman Jerome Powell who will speak at the Jackson Hole economic symposium later this week.
Following major currencies, the euro remained stuck at 20-year lows amid growing fears of a recession after a decline in European Zone PMI data.
The pound also remained trading lower after UK manufacturing and services PMI data showed mixed readings in August.
