The dollar recovered some ground in early Monday trading, while the yen pared gains it had made as investors, who are undecided about the scope of the Federal Reserve's expected interest rate cut later this month, waited for U.S. inflation data due this week for more clues.

China inflation raises concerns

In China, data showed consumer prices rose in August at the fastest pace in half a year, but producer price deflation worsened, prompting calls for more stimulus to support a still-struggling economy.

The yuan on the mainland was last down 0.3 percent at 7.1117 per dollar, while offshore it was down 0.27 percent at 7.1142 per dollar.

Other major drivers were absent from other currencies after long-awaited U.S. jobs data released on Friday failed to provide traders with clear indications on whether the Federal Reserve will cut interest rates by 25 basis points or 50 basis points at its meeting next week.

The yen gave up some of its gains after rising 2.73 percent last week amid risk aversion in markets and some volatility following the U.S. non-farm payrolls report.

The Japanese currency fell 0.44 percent to 142.92 against the dollar.

The euro fell 0.1 percent to $1.1075, while the pound fell 0.08 percent to $1.3119.

The dollar index rose against a basket of major currencies by 0.13 percent to 101.33 points, according to Reuters data.

The Australian dollar rose 0.04 percent to $0.6673, after falling more than 1 percent and touching its lowest level in almost three weeks on Friday.

The New Zealand dollar fell 0.13 percent to $0.6167, remaining close to a two-week low hit on Friday.