The dollar steadied in early trading on Tuesday, while the yen fell slightly from a one-month high in cautious trading as investors awaited U.S. inflation data and reassessed expectations of a large interest rate cut by the Federal Reserve next week.
A mixed jobs report released on Friday did not provide a clear picture of whether the US Federal Reserve will cut interest rates by 25 basis points or 50 basis points at its policy meeting on September 17-18.
Investors are now looking ahead to the US consumer price report for further clues, although the Fed has made clear that the focus is on employment rather than inflation.
The dollar was little changed at 143.10 yen, giving up gains earlier in the session but still off a one-month low of 141.75 yen hit on Friday. The dollar fell 2.7 percent against the yen last week.
The dollar index, which measures the performance of the US currency against a basket of six major currencies, recorded 101.61 after rising 0.4 percent on Monday.
The euro was last trading at $1.1039 after falling about 0.5 percent on Monday.
Sterling was last trading at $1.307 after approaching a three-week low of $1.3058 earlier in the session.
As for other currencies, the Australian dollar recorded in its latest transactions 0.66655 US dollars after touching its lowest level in more than three weeks at 0.66445 dollars.
The New Zealand dollar traded at $0.6148, remaining near a three-week low hit on Monday.
