Forex investors' refuse to believe the Federal Reserve will raise rates yet again this year, which held the dollar back at the start of a week. A week packed with speeches from Federal Reserve and other senior central bank officials.
The yen dipped early in European trade weighed by mildly improved appetite for risk among traders and helped keep the dollar index roughly flat on the day as Britain's pound inched higher.
Sterling bounced from lows hit in the past 10 days due to uncertainty over the makeup of the next government, supported by a shift by several Bank of England policymakers towards raising interest rates this year. GBP/USD was up more than a quarter percent to 1.2760.
Market participants so far are coy to buy the Fed's own line that it will raise U.S. rates once more before the end of 2017 and another three times next year.
This weighed on Treasury yields which stayed near historically low levels and halted any progress for the greenback. EUR/USD traded at 1.1179, near its highest level since June 15 when it traded as high as 1.229. The dollar was 0.58 percent stronger at 111.91 yen.
Yellen makes a hotly awaited speech in Europe on Tuesday. She is preceded by European Central Bank chief Mario Draghi on Monday, watched for signs he is ready to let the ECB move more forcibly towards a reduction in emergency stimulus for the economy this year that should support the euro.
