NEW YORK (CNN/Money) - The dollar gained against the yen Monday as dealers continued to digest China's revaluation of the yuan last week.

Treasury debt prices edged lower.

The dollar bought ¥111.41 Monday, up from ¥111.33 late Friday. The euro bought $1.2062, up from $1.2061 late Friday.

"The whole China effect is fading. We are moving back to trading in familiar ranges and the market is realizing it was not a big move," said Mitul Kotecha, head of FX research at Calyon in London, told Reuters.

The dollar had fallen to as low as ¥109.85 last Thursday after China revalued its currency, the yuan, up two percent against the dollar and now allows it to trade within a narrow band as opposed to the previous peg. China also said it would tether the yuan to a basket of currencies instead of pegging it to the dollar.

The move caused the yen to rally, as it's expected China will have to buy many more yen and more Japanese bonds to include the yen in its new basket of currencies.

"The market has been very stable since last Friday, simply correcting the huge move on Thursday," the senior dealer at a bank in New York told Reuters.

Investors will now focus on upcoming U.S. economic data, including consumer confidence numbers and a revision to second quarter gross domestic product due later this week.

"If U.S. data continues to be firm then the cyclical picture will keep the dollar supported for now," Reuters quoted a UBS analyst saying in a research note. "Thus, we maintain our one-month forecast of $1.21 for the euro and 110 for dollar/yen while remaining long-term dollar bears."

In Treasuries, the benchmark 10-year note slipped 9/32 of a point to 98-31/32 to yield 4.25 percent, up from 4.23 percent late Friday. The 30-year bond lost 15/32 of a point to 113-23/32 to yield 4.46, also up slightly from 4.45 percent in the previous session. Treasury prices and yields move in opposite directions.

In shorter-dated bonds, the five-year note lost 5/32 of a point to yield 4.06 percent, while the two-year note fell two ticks, yielding 3.94 percent.

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