Tokyo: The US dollar index held steady at 98.073 points on Monday, following recent losses, as many markets in Asia remained closed for holidays and overall liquidity stayed low. The Japanese yen weakened sharply against the dollar, recording its largest daily decline in five months, as expectations grew for more expansionary monetary policy, adding pressure on the Bank of Japan (BOJ).

According to Qatar News Agency, the yen fell 1.9% to 150.35 per dollar, marking its steepest one-day drop since May 12, and erasing gains accumulated over the past two months. It also declined 1.7% to 176.19 per euro, its lowest level since the launch of the single European currency.

The euro stabilized at $1.1723, down 0.2% during Asian trading. The New Zealand dollar pared early losses to trade at $0.5832, snapping a six-day winning streak ahead of the Reserve Bank of New Zealand's policy meeting on Wednesday.

Meanwhile, the Australian dollar edged up 0.1% to $0.6603, while the British pound slipped 0.2% to $1.3450. The offshore Chinese yuan also weakened 0.1% to 7.1456 per dollar.