The dollar pushed higher against the yen on Monday as market sentiment was boosted by indications that geopolitical tensions are easing, curbing safe haven demand for the Japanese currency.
USD/JPY edged up 0.07% to 102.09, holding well above Friday’s two-week lows of 101.50.
The dollar fell against the yen on Friday after the U.S. launched airstrikes in Iraq and tensions between Russia and Ukraine mounted.
Market sentiment recovered on Monday following reports Russia ended military exercises it was holding close to the border with Ukraine, but investors were continuing to monitor developments in the region closely.
News of a fresh 72-hour ceasefire between Israel and Hamas in Gaza which came into effect on Sunday also eased concerns over geopolitical instability in the Middle East.
The euro was lower against the dollar, with EUR/USD down 0.18% to 1.3385.
Concerns over the divergence on monetary policy between the European Central Bank and its major peers continued to pressure the single currency lower.
The pound edged higher, with GBP/USD easing up 0.10% to 1.6789, while the Swiss franc was slightly lower, with USD/CHF easing up 0.12% to 0.9064.
The Swissy showed little reactions after data on Monday showed that Swiss retail sales jumped 3.4% in June from a year earlier, easily outstripping expectations for sales growth of 0.3%.
The commodity linked dollars were little changed, with AUD/USD at 0.9270, NZD/USD trading at 0.8463 and USD/CAD steady close to three month highs at 1.0973.
The Canadian dollar remained under pressure after data on Friday showed that the country’s economy added far fewer jobs than expected in July.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, eased up 0.10% to 81.53.