The dollar rose slightly to the highest level in nine months, the Japanese yen on Monday but dipped versus its major pairs post Federal Reserve Chair Jerome Powell on Friday left the door open for potential future rate hikes.

As the yen declines, traders are on the lookout for any indications that the Japanese government would intervene in the currency market.

Investors increased their wagers that the U.S. central bank would increase rates once more this year after Powell acknowledged that possibly more rate rises were necessary to bring down inflation that was still too high. Powell also pledged to go cautiously at subsequent meetings.

Prior of Thursday's expected U.S. personal consumption expenditures and European inflation data, as well as the much-awaited August jobs report from the United States on Friday, the market is basically consolidating.

The United States economy has been strong for the past month, while European growth has slowed. As a result, the euro has lost ground against the dollar.