The green currency rebounded against a basket of major currencies as depicted by the dollar index, which rebounded to a high of 81.46 from the day's low of 81.04 ahead of the Fed meeting tomorrow.
Over the past few months the dollar has been negatively impacted by the downbeat US data which worsened the outlook for the world's largest economy.
This week news will show that confidence among U.S. homebuilders will linger at 17-month low, according to median estimates.
Analysts expect policy makers to keep interest rate near zero and not to introduce new stimulus.
The dollar and yen upside correctional movements during the US session snapped some of last week losses.
Concerning the euro-dollar pair, it fell from a high of 1.3121 to a low of 1.3027 where it found resistance at 1.3120 levels. The euro reversed its earlier giants despite the Irish central banks announcement that the government will not need any help from the EU as it is getting ready for bond sell this week.
Now, the pair is trading at 1.3030, while the trading range for today is among the key support at 1.2990 and the key resistance at 1.3260.
Turning to the sterling-dollar pair, it slipped on the daily charts after the news showing that mortgage approvals dropped to 16-month low in August, thereby, adding more concerns with regard economic recovery.
The upbeat announcement, however, by Moody's investors services regarding UK with it its current "Aaa" credit rating is capable of facing the daunting challenges awaiting the economy to revamp financial and economic problems.
Meanwhile, the royal pair is trading at 1.5564 after visiting a high of 1.5684 and a low of 1.5552, whereas the trading range for today is among the key support at 1.5425 and the key resistance at 1.6000.
With regard to the dollar-yen pair, it is little changed due to holiday in Japan where the pair is trading close to the day's opening price after dropping earlier to a low of 85.76.
Last week, Japanese policy makers intervened for the first time since 2004 in FOREX market through selling yen to weaken the currency that hovered above 15-year high against the dollar to protect national exporters and boost growth.
The pair is currently seen trading at 85.70 while the trading range for today is among the key support at 84.00 and the key resistance at 88.50.