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Against the Canadian dollar, the greenback fell 1.3% to C$1.4295, after earlier hitting its weakest level since mid-December.
Trading volume was lighter than usual due to U.S. markets being closed for the Martin Luther King Jr. Day holiday. Since the November presidential election, the greenback has risen 4% as traders anticipate Trump's policies will boost growth and inflation.
Investors' attention was firmly fixed on the policies Trump will enact on his first day in office. At a rally on Sunday, Trump said he would impose severe limits on immigration.
Some analysts were expecting Trump to invoke the International Emergency Economic Powers Act (IEEPA).