The dollar stabilised yesterday near its lowest level in two weeks as investors scaled back their expectations for the Federal Reserve to raise interest rates this year, while the yen remained near its lowest level in 40 years, keeping investors on edge over Tokyo's next possible move.
The euro was at $1.1435, close to a two-week high, while sterling was last trading at $1.3351.
The dollar index, which measures the performance of the US currency against six other major currencies, was steady at 100.9 at the open.
The yen held at 161.57 against the US dollar, near the low of 162.84 last seen since 1986 that it recorded last week, as traders remained wary of the possibility of intervention after a sudden surge in buying briefly pushed the currency higher on Thursday.
The US dollar posted its biggest weekly decline since April last week after a US jobs report showed a sharp slowdown in employment growth in June, easing market expectations for a Federal Reserve rate hike.
Analysts at OCBC Bank said: