The dollar trimmed losses against the yen on Monday after data showed business activity in the manufacturing sector came in above the consensus forecast. The dollar was last at 82.32 yen, compared with 82.16 yen prior to the data, but was still down 0.6 percent on the day. "It gives more credence to the narrative we've been seeing over the past couple of weeks, that stronger U.S. data will make it less likely the Fed will participate in QE3," said John Doyle, currency strategist at Tempus Consulting in Washington. "If that's how the market takes it, I think it'll be a more dollar positive event."

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