The greenback slipped lower on Monday weighed by a dip in U.S. Treasury yields while forex traders consolidated Friday's gains on low volume to start the holiday-shortened U.S. trading week.

Traders traded cautiously ahead of a speech by Federal Reserve Chair Janet Yellen on Monday. U.S. retail sales data later today and a reading on consumer sentiment due later this week, also weighed on sentiment.

The dollar index, which tracks the greenback against its major rivals, rose to 101.34 in Asian trading, its highest since March 15. But that move reversed as North American trading opened and Treasury yields fell.

New York Fed President William Dudley said the Fed may delay raising interest rates further at the same time that it begins shrinking its balance sheet, prompting only a "little pause" in the central bank's rate hike plans.

Investors will be weighing Yellen's remarks to see if she backs Dudley's stance on reducing the U.S. central bank's balance sheet or slowing the pace of interest rate tightening.

USD/JPY was little changed at 110.90, pulling back from earlier gains.

EUR/USD nudged slightly higher to close the day just below 1.06 after earlier falling to its lowest since March 9.

Volume was lower than usual due to many traders being away for the Passover and Easter holiday breaks.