The U.S currency was not far from an 8 month low against a basket of currencies on Monday with expectations increasing that the Fed would resort to a second round of bond purchases.
U.S. manufacturing growth slowed last month and inflation remained subdued in August, leaving the door open for the Federal Reserve to launch a fresh round of monetary policy easing.
How fast that happens will depend on economic indicators to be released before the Fed's next policy meeting on November 2-3.
The dollar looked vulnerable against a basket of currencies, hovering near Friday's 8 month low, but had edged up 0.2% against a basket of currencies in early trade on Monday.
