The dollar steadied on Monday as investors wondered whether the greenback's sharp sell off in the wake of U.S. jobs data on Friday had been overdone.
The dollar lost one percent against the euro on Friday as mixed news on the U.S. labor market dimmed speculation the Federal Reserve might accelerate its pace of monetary tightening.
The U.S. economy generated 262,000 new jobs in February, the biggest gain in four months, but the good news for workers was tempered by a rise in the jobless rate.
The dollar stood at $1.3226 per euro (EUR=) at 0800 GMT, up 0.1 percent on the day, but still close to its lowest level since early January. The dollar was up 0.2 percent against the yen at 104.90 (JPY=).
The U.S. currency got some support on Monday after Chinese officials said interest rates did not need to rise and the yuan currency would be kept stable for now.
"An appreciation of the yuan is not favorable for China's economy and would also be unfavorable for global economic development," China's foreign exchange chief, Guo Shuqing told on the sidelines of a conference in Beijing.
These comments eased speculation China would let its pegged currency rise against the dollar in the near future. Any revaluation of the Chinese yuan would be expected to send the dollar lower against a broad range of Asian currencies due to the region's trade links. (s)