The greenback saw a slight increase on Monday amid quiet trading, with investors eyeing important inflation data later in the week to guide future decisions on Fed policy.

The dollar index that gauges the greenback versus its major pairs added 0.1% to 103.017, muting following the earlier week volatile fluctuations.

The dollar was supported by the end of the previous week following better than projected US Jobless claims which soothed the recession fears.

At the beginning of the week, the greenback faced challenges due to concerns about the US economy and the BOJ's aggressive stance.

July's CPI data is anticipated to reveal that inflation is moving near to Fed’s 2% annual target, with predictions suggesting that annual core inflation will drop slightly to 3.2%, its lowest level since April 2021.

EUR/USD advanced 1.0920, Close to last week’s peak of 1.1009, which was the highest level for the pair since January 2.

GBP/USD muted at 1.2759, as a packed week of UK economic data begins, investors are on the lookout for signals about whether the BOE will keep its rate-cutting cycle going into next month.

USD/JPY edged up 0.4% to 147.25, retreating further after an impressive rally over the past month.