In Tokyo, the US dollar remained near a five-month low against other major currencies on Monday due to uncertainties surrounding President Donald Trump's trade policies and underwhelming macroeconomic data trends.

The euro was close to a five-month high after German political parties reached an agreement on a budget plan that could stimulate defense spending and economic growth in the largest economy of Europe.

Goldman Sachs analysts noted significant shifts in the financial markets recently. The first shift saw a decline in US assets due to trade uncertainties and policy unpredictability under the new administration. Conversely, there was an increase in Germany's fiscal stimulus, posing a challenge to the prevailing narrative of US exceptionalism in the markets.

The euro was trading at $1.0881, slightly down from the previous week's peak of $1.0947. The announcement from German Chancellor-in-waiting Friedrich Merz regarding a potential rise in state borrowing received support, enhancing the chance for approval by the outgoing parliament next week.

The Japanese yen remained strong near a five-month high, supported by hawkish signals from the Bank of Japan. Both the Bank of Japan and the US Federal Reserve are expected to maintain their current policies in upcoming decisions.

The Chinese yuan approached a four-month high in offshore trading ahead of a significant press conference aimed at stimulating domestic consumption.

The dollar index, measuring the currency against other major currencies, was steady at 103.71, near a five-month low reached last week. Concerns over Trump's trade policies impacting global trade sparked a decline from its peak in January, leading to worries of recession fueled by growing tariffs and reduced consumer confidence.