The yen staged a rally, and the euro hit its highest level of the year on Monday, while the dollar broadly weakened as traders anticipated dovish hints from the Fed’s meeting minutes and Chair Jerome Powell’s speech at Jackson Hole.

The Fed’s July meeting minutes, set for release on Wednesday, and Powell’s Friday speech are expected to be the key drivers for currencies this week. Additionally, inflation data from Canada and Japan, along with Purchasing Managers' Index readings from the US, eurozone, and UK, will also influence the markets.

USD/JPY edged lower at 0.9% at 146.32, post dipping below 146.

Analysts assess the shift is due to dollar weakness and the likelihood of a further reduction in the interest rate gap between the U.S. and Japan.

Bank of Japan (BOJ) Governor Kazuo Ueda is anticipated to address the central bank's decision to raise interest rates last month during his appearance in parliament on Friday.

EUR/USD ticked up 0.1% higher at $1.1036, having hit a robust level since the beginning of 2024 at $1.1051.

GBP/USD hit 9 months high at of $1.2975 and traded lastly at $1.2968.