The U.S. dollar reached a new 34-year high against the Japanese yen on Monday, as investors responded to the Federal Reserve's hawkish stance on interest rates. The dollar rose to 154.85 yen, its highest level since mid-1990.
The yen's weakness comes ahead of the Bank of Japan's policy meeting on Friday. Market participants are watching to see if the BOJ will intervene to support the yen. However, some analysts believe that the BOJ may be reluctant to intervene if the dollar's strength is driven by higher U.S. yields.
In other currency markets, the dollar index was flat to slightly higher at 106.13. The euro was little changed at $1.0651, while sterling slipped 0.1% to $1.2352.
In cryptocurrencies, bitcoin was up 3.6% at $66,384. The world's largest cryptocurrency completed its "halving" at the weekend, which reduces the rate at which bitcoins are created.