Going into the European session, the US dollar is seen to maintain its strengthening momentum despite a slight decline in the previous session.
With US 10-year treasury yields stronger, the greenback continued to strengthen against the yen to a new six-month high.
Expectations for the Federal Reserve (Fed) to raise interest rates at its June meeting rose again after US personal consumer expenditure (PCE) data showed an increase in April.
US 2-year and 10-year bond yields surged to fresh two-month highs and were firm around 4.64% and 3.84%, respectively, following Friday's data.
Bond markets were closed on Monday following the Memorial Day holiday in the United States, but futures were generally steady.
Investors are now looking forward to a clearer currency market reaction following the agreement reached on the US debt ceiling issue.
However, due to most banks being closed today, market movement is expected to be limited.
In addition to the US, the UK, German, Swiss and French markets are also closed for public holidays today.
Against the US dollar, the euro moved flat at around a two-month low, while the pound slipped slightly to a one-month low.
The Aussie dollar rose slightly on improved sentiment, while the New Zealand dollar was flat with price movements still hovering at six-month lows against the greenback.
Meanwhile, the Canadian dollar is also showing gains but prices are still stuck around one-month lows.
