Early on Monday, the greenback inched up as investors sought out safe havens because of the continued financial crisis and in anticipation of Fed’s meeting this week and the interest rate trajectory.

The dollar index that gauges the greenback versus its major pairs by 0.1% at 103.470.

Following the announcement of emergency liquidity measures by a number of significant central banks, the dollar slipped overnight.

Given the instability in the banking industry, projections are soaring that the U.S. central bank will only hike interest rates by 25 basis points, a lower increase than earlier this month looked inevitable.

EUR/USD slid by 0.1% to 1.0659 prior to ECB President Christine Lagarde's speech to the European Parliament's economic committee later in the session.

GBP/USD surged by 0.2% to 1.2193 while the Bank of England is anticipated to raise interest rates later this week. The central bank will, however, have a difficult time balancing concerns about financial instability with the inflation taming.

USD/JPY plunged by 0.5% to 131.12, as well as the yen profiting from its safe haven position.