Dollar Firms Ahead of U.S.-China Summit

The Asia FX market was relatively quiet on Monday due to holiday-thinned trade. Focus is shifting towards the upcoming U.S.-China summit in Washington, where top-level talks are expected between Presidents Donald Trump and Xi Jinping.

The dollar firmed slightly, rising 0.1% against the yen and euro after a strong week last week. The Federal Reserve's commitment to its 2% annual inflation target is seen as a signal for more monetary tightening, which supported the greenback.

The Bank of Japan's decision on Friday to hike interest rates by 25 basis points was widely expected but came with less hawkish commentary than markets had anticipated. The BOJ stopped short of telegraphing further rate increases in the coming months.