Monday saw a sharp increase in the value of the US dollar relative to the Japanese yen as a report revealed that, contrary to what some investors had anticipated, the Bank of Japan did not see much need to quit negative interest rates in December.

This week, eyes are on Fed’s interest rate decision on Wednesday and the U.S. inflation data for November due on Tuesday.

Data released on Friday revealed that although the unemployment rate dropped to 3.7%, job growth in the United States increased in November. This indicates the labor market's durability in the greatest economy in the world and casts doubt on the likelihood that the Fed will soon decrease interest rates, maybe starting early in 2019.

The dollar index that gauges the greenback versus its major pairs edged up by 0.16% to 104.13.

EUR/USD muted at $1.0757, close to the lowest level touched earlier on Friday at $1.0724.

GBP/USD edged up 0.3% at $1.2577.

USD/JPY advanced by 1.03% at 146.42 yen, as s speculation mounted that the Bank of Japan would change policy as soon as next week, the sharp decline against the Japanese currency toward the end of last week was partially reversed.