As a result of weaker-than-expected inflation figures and the start of a week with fewer trading days due to holidays, the greenback crept up in early European trade on Monday, somewhat regaining the losses it suffered on Friday.

The dollar index that gauges the greenback versus its major pairs, jumped 0.2% to 102.75 after falling 0.4% on Friday.

Cooler-than-expected inflation in May hurt the dollar on Friday, indicating that the Federal Reserve's yearly tightening cycle was having some effect.

EUR/USD plunged by 0.2% to 1.0890, in advance of the publication of manufacturing PMI data for the majority of Europe, which is anticipated to demonstrate that this crucial industry is still in a slump.

GBP/USD slid 0.1% to 1.2688, dealers have continued to factor in additional rate increases from the Bank of England after climbing 5% in the first half of the year, while the country's inflation rate stayed at 8.7% in May, the highest of any significant advanced economy.

USD/JPY ticked up by 0.3% to 144.75, after figures revealed that Japan's factory activity shrank in June after expanding for the first time in seven months in May, the market was trading close below the psychologically significant barrier of 145.