2018.05.2101:29:00UTC+00Dollar Strengthens Against Yen as U.S.-China Trade War Fears Ease

The dollar climbed versus the yen on Monday, after U.S. Treasury Secretary Steven Mnuchin said the U.S. trade war with China is “on hold”, lifting risk sentiment amid hopes for an easing of trade tensions between the world's two largest economies.

The dollar index, which measures the greenback against a basket of six major currencies, increased 0.3 percent to a new high for 2018 of 93.88.

The greenback climbed 0.2 percent to 110.99 yen, nearing a four-month peak of 111.085 yen that had been set on Friday.

The euro fell to $1.1744 at one point, hitting its lowest level in five months, and was last down 0.2 percent on the day at $1.1747.

The common currency has dropped around seven cents in about a month amid a sharp dollar rally.

Concerns have also mounted about the agreement between Italy's far-right League and 5-Star Movement on a governing accord that would slash taxes and ramp up welfare spending.

A focus for markets this week is Wednesday's release of minutes from the Federal Reserve's latest monetary policy meeting. Investors will be watching the minutes for clues about the pace of the current tightening cycle.

The U.K. pound lost 0.3 percent at $1.3428.

Bucking the trend was the Australian dollar which fimed against the U.S. dollar, rising 0.2 percent to $0.7522.