The dollar turned tail from last week's multi-month highs on Monday as investors fretted data this week could put the spotlight back on the United States' external deficit problems.
U.S. trade figures due on Tuesday and forecast to show the deficit widened to $59 billion in February, the country's second biggest on record.
Portfolio flow figures on Friday, meanwhile, will show whether the United States was able to attract enough capital from overseas to cover its current account gap.
"So far this year the market has been focused on the positive cyclical story in the United States but this week structural factors will be back in focus," said Tania Kostos, currency strategist at RBC Capital Markets.
"The dollar is coming in for some profit-taking."
The dollar fell half a percent against the yen to 107.65, moving further away from five-month highs set last week.
The euro shrugged off news of an unexpected fall in French industrial output to rise 0.3 percent to a 10-day high of $1.2984. Nevertheless, chart watchers said a move above $1.3065 was needed to eliminate downside pressure on the single currency.
The euro hit a two-month low below $1.28 last week, having shed almost nine cents from record highs scaled in the final days of 2004.