The Japanese yen is rising against the greenback as expectations grow that the Bank of Japan will end its negative interest rate policy at its March 19th meeting.
The US dollar index .DXY, which tracks its performance against major currencies, fell to 102.68 after the latest jobs data pointed to a cooling labor market in the world's largest economy, a key obstacle for the Federal Reserve to cut interest rates in June.
According to Reuters, the US dollar index fell near a two-month low on Jan. 15.
The dollar was down 0.23% against the yen at 146.73.
According to analysts at Westpac, the USD/JPY pair is expected to extend its gains this week amid expectations that the Bank of Japan may change its policy. At the same time, the Dollar Index may fall to the 101 level.
Jiji news agency said that Japan's main financial regulator is preparing a new quantitative monetary policy framework, which will replace the current yield curve control.
It is worth noting that the weaker tone in the equity markets is another factor providing some support for the Japanese yen, although a modest rise in the US dollar is helping to limit losses for the USD/JPY pair.
Meanwhile, FedWatch data showed that markets are pricing in a 73% probability of a Fed rate cut at the June 11-12 meeting.
EUR/USD is trading at 1.0945 after the European Central Bank left interest rates unchanged but signaled a future rate cut.
GBP/USD is down to 1.2842 after rising to 1.2890 on Friday on expectations that the Bank of England will cut rates more slowly than the Fed or ECB.
AUD/USD and NZD/USD fell 0.2% and 0.05% to 0.6614 and 0.6170, respectively.
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