The greenback dipped on Monday as traders were on high alert ahead of this week's policy announcements from a number of central banks, including the Federal Reserve, which is anticipated to pause interest rates for the first time since a year and half.

The tone for the week will be set by monetary policy meetings of the Federal Reserve, the European Central Bank (ECB), and the Bank of Japan (BOJ), as markets look for hints from decision-makers on the direction that interest rates will go in the future.

On the other hand, the vast majority of economists surveyed by Reuters predict that the ECB will increase its benchmark interest rate by 25 basis points this week and once more in July, then pause for the remainder of the year as long as inflation is persistent.

EUR/USD ticked up by 0.2% to $1.0772, having increased 0.4% the previous week, the first weekly increase in about a month.

USD/JPY slumped to 139.49 per US dollar, according to sources who spoke to Reuters, are anticipated to retain ultra-loose monetary policy and a prediction for a mild economic rebound as strong business and consumer spending cushion the hit from slowing international demand.