The U.S. dollar index, which measures the currency against a basket of rivals, was 0.076% lower at 105.04, after having been as low as 104.66 earlier in the session.
Yellen also discussed Russia's war in Ukraine with her Chinese interlocutors, and said it was "essential" that Chinese firms avoid providing Russia with material support for the war, or in evading sanctions.
Yellen told lawmakers last week that Treasury will likely be unable to pay all the government's bills as early as June 1 without an increase in the federal debt limit.
Yellen, seeking to calm nerves as the U.S. financial system faces its worst turmoil in more than a decade, said the steps the administration and federal regulators have taken so far have helped restore confidence.
Yellen, in an excerpt of remarks prepared for delivery to the American Bankers Association on Tuesday, says that overall the situation is stabilising."
Finance Minister Nirmala Sitharaman meets US Treasury Secretary Janet Yellen ahead of the first G20 financial conclave meeting, in Bengaluru. The two leaders exchanged views on G20 Finance Track priorities under G20India Presidency in 2023.
One hope for this week’s G-20 meeting is that a new endorsement of the debt framework by China’s finance ministry might provide cover for those bank executives.
Sitharaman is on an official visit to the United States from October 11 to 16. During her visit, she will be attending the Annual Meetings of the International Monetary Fund (IMF) and the World Bank, the G20 Finance Ministers and Central Bank Governor (FMCBG) Meetings.