The dollar fell against the yen and other major currencies in Asia trade Monday, following solid manufacturing data from China that helped push up the Australian dollar.
The greenback also lacked firmness after a Federal Open Market Committee meeting last week that offered little indication U.S. interest rates would rise anytime soon.
As of 0450 GMT, the dollar was at Y101.92, compared with Y102.07 late Friday in New York. The euro also gained slightly against the dollar. The common currency was at $1.3607 from $1.3600.
The HSBC Purchasing Managers' Index came in at a seven-month high of 50.8--the first time this year that the Chinese manufacturing data has risen above the 50 mark. That pushed the Australian dollar up to $0.9440 from $0.9391, after hitting $0.9445, its highest since April 10.
Currencies closely tied to growth in China such as the Aussie dollar are bought when solid data from the world's second-largest economy is released, and with little from the FOMC to help support it, the greenback fell.
The dollar selling against the Aussie rippled through to other currency pairs, pulling down the greenback against the yen, said Yuzo Sakai, FX manager at Tokyo Forex & Ueda Harlow.
Caution in markets over Prime Minister Shinzo Abe's growth strategy slated for release Tuesday was another factor driving up the Japanese currency, Mr. Sakai said.
The yen tends to gain as a safe-haven currency when investors' risk sentiment is subdued. The Nikkei Stock Average was down 0.1% around 0455 GMT. The euro fell to Y138.68 from Y138.80.
Mr. Sakai added that while good China data usually sparks yen selling on stronger risk-taking sentiment, dollar selling predominated Monday, underscoring how "the bullish view on the dollar is receding slightly following the FOMC," as investors have no idea when the Fed will raise rates.
Traders will now turn their attention to a speech by Bank of Japan Gov. Haruhiko Kuroda for possible trading cues. Mr. Kuroda will speak to business leaders in Tokyo from 0600 GMT.
The WSJ Dollar Index, a measure of the dollar against a basket of major currencies, was down 0.13% at 72.97.