The Japanese yen has fallen to its lowest level against the US dollar since 1986, sparking market speculation that Japanese authorities might intervene to support the currency. Meanwhile, the US dollar index has retreated.
The Bloomberg Dollar Spot Index declined by 0.1%, having risen 0.5% last week.
US Treasury yields showed little movement, fluctuating within a range of less than 1 basis point from Friday's closing levels. Oil futures stabilized near their lowest point in nearly four months.
Market attention is focused on the European Central Bank's Sintra Forum, where key central bank figures, including Federal Reserve Governor Kevin Warsh, ECB President Christine Lagarde, Bank of England Governor Andrew Bailey, and Bank of Canada Governor Tiff Macklem, are scheduled to speak on Wednesday.
The USD/JPY pair rose 0.1% to 161.96, hitting its weakest level in almost 40 years.
Strategists at Citigroup have closed their long-yen recommendation from May, citing a lack of "clear signals" from Japan's Ministry of Finance regarding potential intervention to support the weakening currency.
Earlier in the day, the yen weakened and Japanese government bonds fell following reports that the Japanese government is expected to call for "appropriate" monetary management in its basic policy guidelines.
The GBP/USD pair gained 0.4% to 1.3258, rebounding from a 0.2% loss last week.
The Bank of England's chief economist warned that Brexit has made the UK's efforts to control inflation more difficult.
The EUR/USD pair increased by 0.4% to 1.1428, partially recovering from a 0.8% decline last week.
The AUD/USD pair fell 0.1% to 0.6891.
Reserve Bank of Australia Assistant Governor Chris Kent stated that the central bank will be better equipped to handle the next crisis after reviewing alternative monetary policy tools.
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