The U.S. dollar slipped Monday as traders awaited key economic data releases, including the delayed jobs report and January CPI figures. The greenback fell 0.3% to 97.220 against a basket of major currencies, reversing gains from the previous week. Market participants are bracing for potential Federal Reserve policy shifts after last week's disappointing labor market data.

Currency markets showed mixed reactions to economic signals. The euro rose 0.4% to 1.1860, benefiting from concerns about U.S. Treasury market liquidity, while sterling remained flat at 1.3611 despite dollar weakness amid political turmoil in the UK. Japanese Prime Minister Sanae Takaichi's election victory triggered intervention warnings from officials, boosting the yen as Finance Minister Satsuki Katayama signaled close coordination with U.S. Treasury officials.

In Asia, the dollar-yen pair fell 0.3% to 156.69 after earlier dropping 0.5%, as Japanese authorities warned of potential market intervention to support the battered currency. The yuan strengthened to 6.9242, approaching levels last seen in mid-2023, supported by aggressive midpoint settings from the People's Bank of China. Markets are pricing in additional rate hikes from the Reserve Bank of Australia following last week's 25-basis-point increase, pushing the Australian dollar above 0.70.