The US dollar declined against the yen amid the investors’ reaction to the stock market decline and the rates reduction against the currencies which are used to finance the carry trade. That day the debt market was quiet: the credit spreads remained practically unchanged compared with the last week closure.
The trade volume was relatively low because of the London market closure due to the holiday, but also because of the expectations about the US coming Friday August employment data which can indicate that the Fed would raise interest rates in September.
On Saturday the Fed Vice Chairman Stanley Fischer said in his statement that the US inflation would likely be growing in case from the dollar growth pressure decline which may allow the Fed to gradually raise rates.
It revived the idea that the Fed would start raising interest rates in September and helped the dollar growth against a range of currencies, including the pound and the franc.