The yen surged on Monday, and the euro touched its highest level this year as the dollar weakened. Traders are anticipating dovish signals from the Federal Reserve's meeting minutes and Chair Jerome Powell's upcoming speech at Jackson Hole.
The dollar fell 1% against the yen, reaching 146.20, and hit a seven-month low against major currencies. The euro rose to $1.1051, its strongest this year. The Australian and New Zealand dollars also reached one-month highs, fueled by expectations of a dovish Fed outlook and potential U.S.-Japan policy divergence.