At 9.30 am(0130 gmt), the local note was quoted at 3.9100/9150 versus the greenback from 3.9170/9200 on Friday.
SINGAPORE: The dollar traded below a five-month high against a basket of currencies on Tuesday, catching its breath after a broad rally inspired by rising U.S. bond yields and relief at an easing of U.S.-China trade tensions.
The dollar's index against a basket of six major currencies last traded at 93.551, down from a five-month high of 94.058 set on Monday.
The greenback's surge to that Monday peak had marked a gain of 5.4 percent in about a month, compared to a mid-April trough of 89.229, which was its lowest since late March.
A pull-back in U.S. 10-year Treasury yields
"We came a long way...so ultimately we are going to get profit-taking," Innes said.
He noted that while the dollar's near-term outlook still looks positive, one factor worth watching was whether business sentiment and the economic outlook in developed countries other than the United States would start to improve.
Such optimism about synchronous global economic growth had been one of the factors that had weighed on the dollar earlier this year.
Over the past month, however, the dollar has been bolstered by generally solid U.S. economic data that has backed the Federal Reserve's monetary policy tightening stance this year, as well as rising U.S. bond yields that bolstered the greenback's yield appeal.
The prospect of a resolution to the U.S.-China trade tensions has further added to the dollar's shine.
The U.S. 10-year Treasury yield last stood at 3.0523 percent
Against the yen, the dollar eased 0.1 percent to 110.96 yen
This week, the dollar's fate rests on the Fed, with several of its officials speaking and the minutes of the U.S. central bank's last monetary policy meeting due to be released on Wednesday.
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