The greenback was slightly weaker in early trading amid investor caution ahead of the release of key data this week.
Despite the decline, the currency king managed to reach a new nine-month high against the yen by touching 146.75 before easing slightly to trade at 146.40 during the Asian session.
Investors are now on alert for any sign of intervention in the currency market from the Japanese authorities following the continued fall of the yen.
Bank of Japan (BOJ) Governor Kazuo Ueda said on Saturday that the bank would maintain its current approach to monetary policy, as core inflation in Japan remained "slightly below" the 2% target.
The dollar index which measures the strength of the greenback fell below the 104.00 level in the Asa session, with the 10-year US bond yield falling to 4.18%.
On Tuesday, the US JOLTS job opening report will be released, marking the start of the release of some labor market data, including Friday's NFP.
Tracking the movements of other major currencies, the euro traded slightly higher at around 1.0825 against the greenback, remaining hovering around two-month lows.
Meanwhile, the pound returned to erase part of yesterday's losses by trading stable at around the 1.2611 level against the US dollar in the Asian session.
Additionally, commodity-linked currencies Aussie, New Zealand and Canadian dollars moved flat despite the US dollar's weakness.
Two key data await the Aussie dollar this week, namely Australian inflation on Wednesday and China's manufacturing and services PMI report on Thursday.
