International Markets concentrated on the European Central Bank's measures to combat currency fragmentation on Monday, ignoring the prospect of political deadlock in France for the time being after President Emmanuel Macron lost an absolute majority in the country's parliamentary election. Final results showed that Macron's Ensemble alliance won the most seats in the National Assembly but came far short of the absolute majority required to rule parliament.

Analysts and traders ignored the election results, instead of focusing on the European Central Bank's efforts to keep borrowing prices in the EU's southern regions under control and the global monetary policy outlook.

At USD1.05315, the euro was up 0.4 percent against the dollar. After touching 135.44 yen in Asia Pacific trading hours, the dollar was little changed at 134.89 yen, close to Wednesday's high of 135.60 yen, the highest since October 1998.

The dollar index, which compares the greenback to a basket of six currencies including the euro and the yen, fell 0.3 percent to 104.41, but it remained close to a two-decade high of 105.79 set on Wednesday when the Federal Reserve raised interest rates by 75 basis points in an attempt to cool rising inflation. On Wednesday and Thursday this week, Fed Chair Jerome Powell will appear before the Senate and the House of Representatives.

Japanese govt calls for BOJ to help curb yen's plunge

US yields rise, FOREX-Yen falls to its lowest level since 1998

FOREX-Dollar gets respite ahead of US inflation test

Pakistani rupee at all-time low of 204-mark against USD in open market