"We expect the PBOC to ease the tight liquidity situation in the next couple of weeks and interbank rates to return to more desirable levels," Nomura analysts said in a note.
Across the Tasman, the Kiwi dollar was trading 0.39% higher at $0.7218, after the jobless rate dropped unexpectedly to 4.9% from 5.3%, dampening prospects for further central bank rate cuts.
The dollar index was up 0.21% to 90.815 at mid-morning in New York, while the euro was off 0.36% to $1.209. Against the Swiss franc the dollar was up 0.45%.
The dollar may be more resilient in the near-term because "both growth and vaccination favour the U.S."
Japan's second-largest carrier said it projected a net loss of 300 billion yen for the year ending March 2021, up from its previous forecast of 240-270 billion yen.
Traders said the yuan and the dollar index remained range-bound for the time being, but the dollar could strengthen as the implementation of US stimulus boosts activity in the world's largest economy.