The dollar pushed higher against the yen Monday after a successful weekend summit meeting between President Donald Trump and Japan Prime Minister Shinzo Abe.
The dollar hit a two-week high against the Japanese currency, up 0.42%.
Trump and Prime Minister Abe held an economic dialogue after the U.S. withdrew from the Trans-Pacific Partnership. Reports indicate that the currency and its strength was not discussed during the weekend summit.
The White House has revealed few details about the meeting between Trump and Abe, which included a trip to Trump's Mar-a-Lago resort and a stop in Washington.
During a joint press conference, Trump stressed the importance of the U.S.'s alliance with Japan and noted that tackling North Korea was a chief priority.
"We will work together to promote our shared interests, of which we have many in the region including defending against the North Korean missile and nuclear threat, both of which I consider a very, very high priority," said Trump.
Sentiment on the dollar began improving last week after Trump spoke with China's leader Xi Jinping and agreed to honor the "one China" policy.
The Chinese yuan weakened overnight as the dollar gained strength, reaching its lowest level in 30 days.
Trump also said his administration would be announcing a "phenomenal" tax reform plan but has yet to reveal any details.
The dollar index held steady at 100.65, hovering near the high of 101.02 reached on Friday.
Investors will be keeping a close eye on Federal Reserve chair Janet Yellen, who is scheduled to give testimony this week. Remarks from the Fed chair will affect forex trading in the coming week and comes at a time when the central banks and policymakers are considering more interest rate hikes than forecasted by markets.
Yellen will testify on Tuesday and Wednesday.
Meanwhile, the euro gained 0.14% against the dollar to trade at 1.0654. Investors are keeping a watchful eye on the situation in Greece as officials continue efforts to reach an agreement on the next bailout payment.
On Monday, the European Commission also raised its growth forecasts for the euro region over the next few years. The commission cautioned that uncertainty about Brexit, U.S. policies and the elections in France and Germany will affect the euro zone's economy.
Despite its gains, the currency remains under pressure amid concerns of France's upcoming election and a potential hard Brexit.
Sterling was trading at 1.2524 during mid-morning trade, up 0.29%.
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