The yen reversed from a 4-1/2-year low against the dollar on Monday after Japan's economy minister suggested the government might be satisfied with its current level, following a sharp decline over the past six months. The dollar dropped 0.6 percent to 102.65, having slid about 1 percent to 102.00. The euro lost 0.6 percent to 131.87 after plumbing 131.05. Support is seen around 131.10, with resistance above 132.55.

Sterling recovered from a six-week low against the dollar on Monday as the US currency dipped after recent strong gains, but it was still vulnerable to signs the US central bank may scale back monetary stimulus. The pound could be lifted by Bank of England minutes on Wednesday and a string of UK data this week, including retail sales and revised first quarter gross domestic product figures, if they continue to point to an improving UK economy.

The yen lifted off a 4-1/2-year low against the dollar on Monday after Japan's economy minister suggested the currency might have weakened enough, prompting some investors to pare bets against it. The dollar fell 0.6 percent to 102.65 yen, having hit a low of 102 in the Asian session. The euro lost 0.5 percent to 132 yen after plumbing 131.045. Last Friday, the dollar reached a high of 103.32 yen, while the euro hovered near a 3-1/2-year peak of 132.78 yen.