On Monday, the dollar faced pressure as concerns over potential currency intervention by Japanese authorities and a surge in China's yuan dampened its performance. Despite the Bank of Japan's recent interest rate hike, the yen continued to strengthen, prompting Japanese officials to issue warnings about the currency's decline. This verbal intervention has created resistance for the dollar against the yen, with analysts suggesting that the yen's weakness doesn't align with underlying fundamentals.

Meanwhile, China's yuan witnessed significant movement, with state-owned banks reportedly selling dollars to support the currency. The pressure on the yuan stems from expectations of further monetary easing to support China's economy, contributing to the dollar's modest retreat. In European markets, currencies saw a slight rebound after last week's dollar rally. Concerns over potential rate cuts by the European Central Bank and the Bank of England have risen following the Swiss National Bank's decision to lower borrowing costs.