The Dollar reached its highest levels against the Yen on Monday, bolstered by a fall in expectations of the Fed cutting interest rates in 2024.

The Yen has declined almost 14% this year, and despite this latest weakening, markets are focused on likely intervention by Japanese authorities to boost the currency, Reuters reports.

In addition, Moody's reduced its outlook for the US credit rating to "negative" on Friday, whilst the focus turned to the US consumer price index data on Tuesday.

Policymakers at the Federal Reserve, including Chair Jerome Powell, indicated the fight against inflation may not be over yet, leading to a scaling back of rate cut bets by markets, driving up short-dated Treasury yields and providing support for the Dollar.

On Monday, the Dollar edged up to 151.85 Yen, the highest since October last year. It last gained 0.2%, following last week's 1.4% rally in the largest weekly rise against the Yen in three months.

"We're in this pause where the Dollar has peaked, and the US economy is slowing, but people are going to wait for confirmation," said Societe Generale strategist Kit Juckes.

"Given the move in US Treasuries of course the Yen is not rallying yet," he said, in reference to US bond yields.

The Dollar index – measuring the currency against major peers – was slightly firmer at 105.80 at the time of writing, maintaining the majority of the gains made last week.

Elsewhere, the Euro was trading around $1.0693, predominantly steady against the greenback. The sterling held firm at $1.2231 ahead of UK average weekly earnings data due to be published on Tuesday, followed by a CPI reading on Wednesday as last week's GDP data showed no growth in the economy.