The dollar advanced 0.2 percent versus the offshore yuan to 6.8483.
The American central bank chairman Jerome Powell said last week that the Federal Reserve could put a pause on the interest rate hikes if the USA economy would weaken and even pledged that he will stay despite the pressure from Trump to resign.
Spot gold was up 0.3 percent at $1,288.02 per ounce as of 12:18 p.m EST (1718 GMT), having reached $1,298.42 an ounce on Friday, its highest since June 15.
Interest rate futures traders are now pricing in a chance of a small rate cut this year, while the Fed has indicated that two rate hikes are likely.
The pan-continental Stoxx Europe 600 fell 0.1% in opening trade.
U.S. officials are meeting their counterparts in Beijing this week for the first face-to-face talks since U.S. President Donald Trump and Chinese President Xi Jinping agreed in December to a 90-day truce in a trade war that has roiled global markets. Bostic, who is not a voting member of the Federal Open market Committee this year, said the Fed may only need to raise rates once in 2019.
Yet, Fed fund futures still implied a rate of 2.33 percent by December, compared to the current effective rate of 2.40 percent.
- Risk on "stable footing" - Hong Kong added 0.6 percent and Shanghai finished 0.7 percent higher, with buying also boosted by news that the People's Bank of China had cut the amount of cash banks must keep in reserve.
Powell has another speech on Thursday to expand on his thinking, while there are at least eight other Fed officials scheduled to speak this week.
Growing bets the Federal Reserve will halt its multi-year rate-hike cycle sent the dollar lower across the board, while rising equity markets and support from OPEC production cuts helped lift oil prices.
The U.S. dollar bought 108.60 Japanese yen, higher than 108.52 Japanese yen of the previous session.
"With the dollar softening following Powell's speech and USA 10-year bond yields well off their highs, this has helped the yuan shrug off the RRR cut and strengthen", said Khoon Goh, head of research at Australia & New Zealand Banking Group in Singapore.
The latter had already received a boost from news Sino-U.S. trade talks were back on, as well as a natural bounce from the wild "flash crash" that rocked markets last week.
Elsewhere, the Australian dollar was lower by 0.07 per cent at US$0.7141. The Aussie was up at $0.7124 on Monday, having briefly dived as deep as $0.6715 last Thursday. The euro was firmer at $1.1413, while the dollar index eased a touch to 96.102.
"We're listening. sensitively to the message that markets are sending and we'll be taking those downside risks into account as we make policy going forward", he told a gathering of economists. The crude benchmark rose 118 cents on Monday to $58.24 a barrel, while USA crude futures gained 93 cents to $48.89.